The average gasoline price of one of the major oil companies has been $2.20 per gallon.because of the 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)state the null and alternative hypothesis in words and in symbols. b)compute the test statistics C)what is the p_value associate with the above sample results?
Continuous Probability Distributions
Probability distributions are of two types, which are continuous probability distributions and discrete probability distributions. A continuous probability distribution contains an infinite number of values. For example, if time is infinite: you could count from 0 to a trillion seconds, billion seconds, so on indefinitely. A discrete probability distribution consists of only a countable set of possible values.
Normal Distribution
Suppose we had to design a bathroom weighing scale, how would we decide what should be the range of the weighing machine? Would we take the highest recorded human weight in history and use that as the upper limit for our weighing scale? This may not be a great idea as the sensitivity of the scale would get reduced if the range is too large. At the same time, if we keep the upper limit too low, it may not be usable for a large percentage of the population!
The average gasoline price of one of the major oil companies has been $2.20 per gallon.because of the 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)state the null and alternative hypothesis in words and in symbols.
b)compute the test statistics
C)what is the p_value associate with the above sample results?
d)at 95% confidence,test the company claim.
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