A real estate agent believes that the average closing cost of purchasing a new home is $6500 in addition to the price of the house. She selects 40 new home sales at random and finds that the average closing costs are $6600. The standard deviation of the population is $120. Test her belief at the 0.05 level of significance.

1. What is the appropriate alternate hypothesis for this problem?
2. What is the critical value for this problem?
3. What is the value of the test statistic?
4. What should the decision be? Reject? or Fail to Reject?