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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?

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?

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.4: Distributions Of Data
Problem 19PFA
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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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