9.55 A random sample of 10 savings accounts was selected from DirectMe Bank in Brussels, Belgium. The daily minimum transaction amount (in €) for each account was recorded below:

1,400 690 1,950 740 920 2,410 695 1,635 750 1,520 Assume that the population distribution is normal.

a. Find the sample mean and standard deviation.

b. Test, at the 5% significance level, the null hypothesis that the population mean is €1,000 against the alternative that it is higher.

9.56 State whether each of the following is true or false.

a. A statement made regarding the entire population for a testing purpose is called the test statistic.

b. A hypothesis that defines a single value for a population parameter of interest is called simple hypothesis.

c. If a null hypothesis is false, then the alternative hypothesis is accepted.

d. The probability of Type I error is referred as 1-b.

e. If a null hypothesis is rejected at 0.05 level of significance, then it also will be rejected at 0.1 level of significance.

f. The result of rejecting a null hypothesis will decrease when the sample size is increased.

g. In a hypothesis test, the p-value signifies the largest level of significance for rejection of the null hypothesis.