1. Suppose that a restaurant launched a new advertising campaign in conjunction with a new menu. After one month they take a random sample of 250 bills (tables) and find an average bill of 73.4. In that sample they also find the standard deviation is 38.6. Conduct a hypothesis test to determine whether the new campaign and menu have increased the average bill above the previous average of 71.6. Hint, the null hypothesis is that mu < = 71.6 and we assume that the standard deviation is unknown so we use the estimate of 38.6 from the sample. What is the test statistic? Answer to three decimal places.

2. Based on the statistic in the previous problem you reject the null hypothesis that the average bill < = 71.6.True or False?