The average gasoline price of one of the major oil companies has been $2.40 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 company's gas stations and determined that the average price for the stations in the sample was $2.32. Assume that the standard deviation of the population () is $0.19. (a) State the null and the alternative hypotheses (in dollars). (Enter != for as needed.)

(a)

State the null and the alternative hypotheses (in dollars). (Enter != for as needed.)

H₀:

H_a:

(b)

Compute the test statistic. (Round your answer to two decimal places.)

(c)

What is the p-value associated with the above sample results? (Round your answer to four decimal places.)

p-value =

(d)

Using = 0.05, test the company's claim.

Do not reject H₀. There is insufficient evidence that the average price has been reduced.

Do not reject H₀. There is sufficient evidence that the average price has been reduced.

Reject H₀. There is insufficient evidence that the average price has been reduced.

Reject H₀. There is sufficient evidence that the average price has been reduced.