The average gasoline price of one of 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. Furthermore, assume that the standard deviation of the population is $0.14.

The value of the test statistic for this hypothesis test is:

Step-by-step explanation:

Data given and notation  

represent the sample mean given

represent the population standard deviation

sample size  

represent the value that we want to test

t would represent the statistic (variable of interest)  

State the null and alternative hypotheses.  

We need to conduct a hypothesis in order to check if the true mean for the gasoline prices is lower than 1.25, the system of hypothesis would be:  

Null hypothesis:  

Alternative hypothesis:  

If we analyze the size for the sample is > 30 but we don't know the population deviation so is better apply a t test to compare the actual mean to the reference value, and the statistic is given by:  

 (1)  

Calculate the statistic

We can replace in formula (1) the info given like this:  

answer: r there any options?

step-by-step explanation: