The average gasoline price of one of the major oil companies has been $1.80 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 companys gas stations and determined that the average price for the stations in the sample was $1.70.Assume that the standard deviation of the population (s) is $0.12.

a.State the null and the alternative hypotheses.

b.Compute the test statistic.

c.What is the p-value associated with the above sample results?

d.At 95% confidence, test the companys claim.