Question
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
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 of the prices for the selected gas stations is $0.10. Given that the p-value is 0.002, state the conclusion. Use α = 0.01.
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