An Energy Analyst Wants to Test If U

Multiple Choice

An energy analyst wants to test if U.S. oil production is random over time. The analyst has monthly production values for the two years. The analyst finds 12 months are above the median, 12 months are below the median, six runs are below the median, and five runs are above the median. Using the p-value approach and α = 0.01, the appropriate conclusion is ________.

A) do not reject the null hypothesis; we can conclude oil production is not random
B) reject the null hypothesis; we can conclude oil production is not random
C) reject the null hypothesis; we cannot conclude oil production is not random
D) do not reject the null hypothesis; we cannot conclude oil production is not random