A recent article found that Massachusetts residents spent an average of $860.70 on the lottery in 2010, more than three times the U.S. average (www.businessweek.com, March 14, 2012). A researcher at a Boston think tank believes that Massachusetts residents spend significantly less than this amount. He surveys 100 Massachusetts residents and asks them about their annual expenditures on the lottery. The data set, labeled Lottery, can be found on the text website.

a. Specify the competing hypotheses to test the researcher’s claim.

b. Specify the critical value(s) of the test at the 10% significance level.

c. Compute the value of the appropriate test statistic.

d. At the 10% significance level, do the data support the researcher’s claim? Explain.