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.

1. At the 0.05 level of confidence, what is the correct statistical decision?

a. Reject the null hypothesis
b. Fail to reject the null hypotheses
c. Accept the null hypothesis
d. Cannot make a statistical decision with this information

The p-value for this problem is:

a. 0.4938
b. 0.0062
c. 0.0124
d. 0.05