Exhibit 9-8
The average gasoline price of one of the major oil companies in Europe has been $1.25 per liter. Recently, the company has undertaken several efficiency measures in order to reduce prices. Management is interested in determining whether their efficiency measures have actually reduced prices. A random sample of 49 of their gas stations is selected and the average price is determined to be $1.20 per liter. Furthermore, assume that the standard deviation of the population ( ) is $0.14.
-Refer to Exhibit 9-8. The value of the test statistic for this hypothesis test is
A)1.96
B)1.645
C)-2.5
D)-1.645

Question

Exhibit 9-8
The average gasoline price of one of the major oil companies in Europe has been $1.25 per liter. Recently, the company has undertaken several efficiency measures in order to reduce prices. Management is interested in determining whether their efficiency measures have actually reduced prices. A random sample of 49 of their gas stations is selected and the average price is determined to be $1.20 per liter. Furthermore, assume that the standard deviation of the population (  ) is $0.14.
-Refer to Exhibit 9-8. The value of the test statistic for this hypothesis test is
A)1.96 
B)1.645 
C)-2.5 
D)-1.645

Quizplus · Accepted Answer

The value of the test statistic is -2.5, which is typically calculated based on the sample data and the null hypothesis in a hypothesis test.

Exhibit 9-8 The Average Gasoline Price of One of the Major Oil