12. You are to test the following hypotheses:

H0: < 1500

Ha: > 1500

A sample of size 16 produces a sample mean of 1540, with a standard deviation of 100.The p-value for this test is .0652. If the significance level set for the test is .05, we should

a. Reject the null hypothesis since < p-value.

b. Reject the null hypothesis since p-value <

c. not Reject the null hypothesis since > p-value

d. not Reject the null hypothesis since p-value >

e. Accept the null hypothesis since > p-value

14. Thornton Renos, a national specialist in kitchen renovations, believes that the average profit on its jobs is at least $19,000. The auditor suspects that the average is less and plans to look at a simple random sample of 50 Thornton jobs. She sets up the competing hypotheses:

H0: 19,000

Ha: < 19,000

She intends to use the following decision rule: Reject the null hypothesis if the sample mean is less than $18,625. What is the significance level implied by this rule? Assume a population standard deviation of $1,050.

a. .01 7

b. .025

c. .015

d. .0057