The average gasoline price of one of the major oil companies has been S2.20 per gallon. Because of cost reduction measures, it is believed that there has been a significant reduction in the average price. In order to test this belief, we randomly selected a sample of 36 of the company's gas stations and determined that the average price for the stations in the sample was $2.14. Assume that the standard deviation of the population (o) is $0.12. a. State the null and the alternative hypotheses. b. Compute the test statistic. c. What is the p-value associated with the above sample results? d. Using a= .05, will you reject, or fail to reject the null?

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The average gasoline price of one of the major oil companies has been $2.20 per gallon. Because of cost reduction measures, it is believed that
there has been a significant reduction in the average price. In order to test this belief, we randomly selected a sample of 36 of the company's gas
stations and determined that the average price for the stations in the sample was $2.14. Assume that the standard deviation of the population ( o)
is $0.12.
State the null and the alternative hypotheses.
Compute the test statistic.
What is the p-value associated with the above sample results?
d.
a.
С.
Using a= .05, will you reject, or fail to reject the null?
Transcribed Image Text:The average gasoline price of one of the major oil companies has been $2.20 per gallon. Because of cost reduction measures, it is believed that there has been a significant reduction in the average price. In order to test this belief, we randomly selected a sample of 36 of the company's gas stations and determined that the average price for the stations in the sample was $2.14. Assume that the standard deviation of the population ( o) is $0.12. State the null and the alternative hypotheses. Compute the test statistic. What is the p-value associated with the above sample results? d. a. С. Using a= .05, will you reject, or fail to reject the null?
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