Exhibit 9-8The 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 standard error has a value of
0.14
7
2.5
0.02
Your Opinion
Quick Reply
