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Z-Test For 2 Varables (Petrol and Diesel) in Dubai ($/BBL)

1. The document performs a z-test to analyze the difference between monthly average petrol and diesel prices in Dubai measured in $/bbl from April 2018 to March 2021. 2. It calculates the variances and means for both petrol and diesel prices using the data provided. 3. Based on the z-value of 0.32 which is less than the critical value of 1.96, it concludes that there is no statistically significant difference between the petrol and diesel prices in Dubai over the period analyzed, and the null hypothesis that there is no difference between the prices cannot be rejected.

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Bhagath Varenya
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53 views5 pages

Z-Test For 2 Varables (Petrol and Diesel) in Dubai ($/BBL)

1. The document performs a z-test to analyze the difference between monthly average petrol and diesel prices in Dubai measured in $/bbl from April 2018 to March 2021. 2. It calculates the variances and means for both petrol and diesel prices using the data provided. 3. Based on the z-value of 0.32 which is less than the critical value of 1.96, it concludes that there is no statistically significant difference between the petrol and diesel prices in Dubai over the period analyzed, and the null hypothesis that there is no difference between the prices cannot be rejected.

Uploaded by

Bhagath Varenya
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Z-TEST FOR 2 VARABLES (

MONTHLY AVERAGE PETROL PRICE($/BBL) DIESEL PRICE($/BBL)


Apr-18 78.4314285714286 82.4390476190476
May-18 85.3080952380952 88.6247619047619
Jun-18 81.5185 85.4385
Jul-18 81.1190909090909 84.855
Aug-18 82.44 86.6980952380952
Sep-18 87.5285 91.8755
Oct-18 85.6678260869565 95.0113043478261
Nov-18 66.9338095238095 79.8790476190476
Dec-18 57.9572222222222 66.9972222222222
Jan-19 59.1281818181818 69.7290909090909
Feb-19 64.38 76.5522222222222
Mar-19 72.83 78.8209523809524
Apr-19 78.8328571428572 81.3452380952381
May-19 74.492380952381 80.4457142857143
Jun-19 65.8652631578948 72.8773684210526
Jul-19 71.0960869565218 76.8352173913043
Aug-19 66.576 73.165
Sep-19 69.5009523809524 75.9009523809524
Oct-19 68.1436363636364 73.9159090909091
Nov-19 71.3285714285714 72.9785714285714
Dec-19 71.2933333333333 75.9228571428571
Jan-20 69.1104761904762 73.3466666666667
Feb-20 62.567 63.4135
Mar-20 35.1922727272727 41.8722727272727
Apr-20 19.4414285714286 25.2452380952381
May-20 30.835 30.7694444444444

Jun-20 42.7909090909091 44.7177272727273

Jul-20 44.7957142857143 48.6371428571429

Aug-20 46.9685 47.4595


Sep-20 45.6645454545455 42.4418181818182
Oct-20 44.8227272727273 42.2886363636364
Nov-20 45.5161904761905 45.7890476190476

Dec-20 52.4140909090909 53.13

Jan-21 58.9145 58.353

Feb-21 66.3631578947368 66.2857894736842


Mar-21 71.5108695652174 67.5673913043479
2 VARABLES (PETROL AND DIESEL) IN DUBAI($/BBL)
Solution

1 Variance of petrol
2 Variance of petrol

Z value using data analysis tool pack

z-Test: Two Sample for Means

PETROL PRICE($/BBL)
Mean 63.2577532923401
Known Variance 274.779
Observations 36
Hypothesized Mean Difference 0
z -0.98540730494252
P(Z<=z) one-tail 0.162212021449754
z Critical one-tail 1.64485362695147
P(Z<=z) two-tail 0.324424042899509
z Critical two-tail 1.95996398454005

P two-tail=32.4% Thus its greater then 2.5%


We can not ignore null hypothesis

The Hyposthesis
Null Hypothesis
There is no significant diffrence
between
the diesle and petrol prices in
Dubai($/bbl)

There is no significant diffrence between


the diesle and petrol prices in
Dubai($/bbl)
H0
There is a significance diffeence between
diesel and petrol prices in dubai ($/bbl)
H1
Step 2:
Level of significance =0.05
Step 3:
Degrees for freedom is 70
Step 4:
Calculated z stats fr 2 tail is 0.32
is lesser than Z(critical) 1.96

Conclusion We accept null hypothesis

There is no significance diffrence between Petrol and Diesel Prices


Formula ='var.s(array) 274.779
Formula ='var.s(array) 321.258

l pack

ans

DIESEL PRICE($/BBL)
67.2673541029414
321.258
36

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