The average gasoline price at chevron was $3.12 per gallon last month. due to the recent nation-wide gas price drop, the chief marketing officer of chevron believes that there has been a significant reduction in the average gas price. in order to test his belief, he randomly selected a sample of 36 of chevron 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%.

step 1: formulate the null and the alternative hypotheses:

h0:

ha:

what kind of test is this? (upper-tailed, lower-tailed or two-tailed test)

step 2: find the test statistic. is this a z-score or a t-score?

critical value approach

step 3: using the critical value approach, what is the critical value?

critical value approach

what is your conclusion (reject or fail to reject the null)?