A recent gasoline survey shows that the national average price of gasoline was $3.498 a gallon. It was felt that gasoline in Texas was significantly lower than the national average. A survey of 10 different suburbs in Dallas, Texas found the average price of gasoline to be $3.394 a gallon with a sample standard deviation of $0.1526. Assume that gas prices follow a normal distribution. We will perform a hypothesis test for this claim at α = 0.01.

The null hypothesis is:

Question 1 options:

1) H₀: μ < $3.498

2) H₀: μ > $3.498

3) H₀: μ = $3.498

4) H₀: μ ≠ $3.498