A group assumed that the average weekly allowance of family is 2100. They asked 5 families and found out that their average allowance is 1400 with a standard deviation of 940. Using 0.05 level of significance, is there a reason to conclude that the average weekly allowance of a family is less than 2100?

Step 1. Formulate the hypotheses.

Step 2. What is the level of significance or alpha?

Step 3. What is the degree of freedom? Look for the value of t.

Step 4. Solve the t-test

Step 5. Make a conclusion whether to accept or to reject the null hypotheses.