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

Multiple Choice

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 standard error has a value of

A) 0.14
B) 7
C) 2.5
D) 0.02