Question

The average gasoline price of one of the major oil companies has been $2.20 per gallon....

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 is $0.12.

a. Conduct a hypothesis test to ascertain the validity of the company’s claim. Use a 0.03 level of significance.

b. Construct a 95% confidence interval for the average price of gasoline.

Math   Statistics-And-Probability   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Thank you for this question. Glad to help you. Please give a thumbs up ☺️

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The average gasoline price of one of the major oil companies has been hovering around $2.20...
The average gasoline price of one of the major oil companies has been hovering around $2.20 per gallon. Because of cost reduction measures, it is announced that there will be a significant reduction in the average price over the next month. In order to test this belief, we wait one month, then randomly select a sample of 36 of the company's gas stations. We find that the average price for the stations in the sample was $2.15. The standard deviation...
The average gasoline price of one the major oil companies in Europe has been $1.25 per...
The average gasoline price of one the major oil companies in Europe has been $1.25 per liter. Recently, the company has undertaken several efficiency measures in order to reduce prices. Management is interested in determining whether their efficiency measures have actually reduced prices. A random sample of 49 of their gas stations is selected and the average price is determined to be $1.20 per liter. Futhermore, assume that the standard deviation of the population is $0.14. using the information in...
The average gasoline price at Chevron was $3.12 per gallon last month. Due to the recent...
The average gasoline price at Chevron was $3.12 per gallon last month. Due to the recent nation-wide gas price drop, the chief marketing officer of Chevron believes that there has been a significant reduction in the average gas price. In order to test his belief, he randomly selected a sample of 36 of Chevron gas stations and found the average gas price of these stations was $3.06. Assume that the population standard deviation of the population is $0.12, and the...
The average gasoline price at Chevron was $3.12 per gallon last month. Due to the recent...
The average gasoline price at Chevron was $3.12 per gallon last month. Due to the recent nation-wide gas price drop, the chief marketing officer of Chevron believes that there has been a significant reduction in the average gas price. In order to test his belief, he randomly selected a sample of 36 of Chevron gas stations and found the average gas price of these stations was $3.06. Assume that the population standard deviation of the population is $0.12, and the...
3. A company that supplies gasoline nationwide reports that the average price per gallon of regular...
3. A company that supplies gasoline nationwide reports that the average price per gallon of regular gasoline is $ 8,150, with a standard deviation of $ 428. There are 750 gasoline stations in the country. Suppose a random sample from 40 gas stations is selected. b. What is the mean or expected value of the sample distribution of the means? c. What is the standard error of the sample distribution of the means? d. Write the syntax for the sample...
At one point the average price of regular unleaded gasoline was $3.47 per gallon. Assume that...
At one point the average price of regular unleaded gasoline was $3.47 per gallon. Assume that the standard deviation price per gallon is $0.07 per gallon and use chebyshev's inequality to answer the following. (a) What percentage of gasoline stations had prices within 3 standard deviations of the mean? (b)What percentage of gasoline stations had prices within 2.5 standard deviations of the mean? (c) What is the minimum percentage of gasoline stations that had prices between $3.33 and $3.61?
At one point the average price of regular unleaded gasoline was ​$3.443.44 per gallon. Assume that...
At one point the average price of regular unleaded gasoline was ​$3.443.44 per gallon. Assume that the standard deviation price per gallon is ​$0.04 per gallon and use​ Chebyshev's inequality to answer the following. ​(a) What percentage of gasoline stations had prices within 4 standard deviations of the​ mean? ​(b) What percentage of gasoline stations had prices within 2.5 What are the gasoline prices that are within 2.5 standard deviations of the​ mean? ​(c) What is the minimum percentage of...
At one point the average price of regular unleaded gasoline was ​$3.72 per gallon. Assume that...
At one point the average price of regular unleaded gasoline was ​$3.72 per gallon. Assume that the standard deviation price per gallon is ​$0.06 per gallon and use​ Chebyshev's inequality to answer the following. (a) What percentage of gasoline stations had prices within 2 standard deviations of the​ mean? ​(b) What percentage of gasoline stations had prices within 2.5 standard deviations of the​ mean? What are the gasoline prices that are within 2.5 standard deviations of the​ mean? ​(c) What...
At one point the average price of regular unleaded gasoline was ?$3.57 per gallon. Assume that...
At one point the average price of regular unleaded gasoline was ?$3.57 per gallon. Assume that the standard deviation price per gallon is ?$0.07 per gallon and use? Chebyshev's inequality to answer the following. ?(a) What percentage of gasoline stations had prices within 4 standard deviations of the? mean? ? (b) What percentage of gasoline stations had prices within 2.5 standard deviations of the? mean? What are the gasoline prices that are within 2.5 standard deviations of the? mean? ?...
At one point the average price of regular unleaded gasoline was ​$3.58 per gallon. Assume that...
At one point the average price of regular unleaded gasoline was ​$3.58 per gallon. Assume that the standard deviation price per gallon is ​$0.05 per gallon and use​Chebyshev's inequality to answer the following. ​(a) What percentage of gasoline stations had prices within 33 standard deviations of the​ mean? ​(b) What percentage of gasoline stations had prices within 1.5 standard deviations of the​ mean? What are the gasoline prices that are within 1.5 standard deviations of the​ mean? ​(c) What is the minimum percentage...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT