Posted by
**Alex** on
.

The average gasoline price of one of the major oil companies has been

$3.20 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 $3.14. Assume that the

standard deviation of the population (σ) is $0.12.

a. State the null and the alternative hypotheses.

b. Compute the test statistic.

c. At 95% confidence, test the company’s claim.

Not sure exactly how to calculate. Help would be appreciated. Thank you.