30 People where surveyed to show how much they put away in savings each month. In USD

Sample Data

50,50,50,50,100,100,100,250,250,500,500,500,750,770,1000,1000,1000,2000,2000,2000,

2000,3000,3500,3500,3500,4000,4000,5000,5000,5000.

1.State the null hypothesis, H0 and the alternative hypothesis, H1

Choose the level of significance,

2.Choose the level of significance, and the sample size, n. The level of significance is based on the relative importance of type 1 and type 2 errors in the situation.

3.Determine the appropriate test statistic and sampling distribution.

4.Determine the critical values that divide the rejection and nonrejection regions.

5.Collect the sample data, organize the results and compute the value of the test statistic.

6.Make the statistical decision, determine whether the assumptions are valid, and state the managerial conclusion in the context of the theory, claim, or assertion being tested. If the test statistic falls into the nonrejection region, you do not reject the null hypothesis H0. If the test statistic falls into the rejection region, reject the null hypothesis.