The averrage gasoline prrice at Chevvron was $3.12 per gallon lastt month. Due to the recent nation-wide gas price drop, the chiief marketing officer of Chevvron believes that there has been a significant reduction in the average gas pricce. In orrder to test hiis belief, he randdomly selected a sample of 36 of Chevvron 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 significance level (α) is 5%. A. What’s your conclusion (reject or fail to reject the null) at 5% significance level? Would you conclude that there has been a significant reduction in the average gas price? Reject the null. There has not been a significant reduction in the average gas price. Fail to reject the null. There has not been a significant reduction in the average gas price. Reject the null. There has been a significant reduction in the average gas price.

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The averrage gasoline prrice at Chevvron was $3.12 per gallon lastt month. Due to the recent nation-wide gas price drop, the chiief marketing officer of Chevvron believes that there has been a significant reduction in the average gas pricce. In orrder to test hiis belief, he randdomly selected a sample of 36 of Chevvron 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 significance level (α) is 5%.

A. What’s your conclusion (reject or fail to reject the null) at 5% significance level? Would you conclude that there has been a significant reduction in the average gas price?


Reject the null. There has not been a significant reduction in the average gas price.
Fail to reject the null. There has not been a significant reduction in the average gas price.
Reject the null. There has been a significant reduction in the average gas price.
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