a) The Canadian Tire store chain issues its own credit card. The credit manager wants to find whether the mean monthly unpaid balance is less than $380. A random check of 72 unpaid balances revealed the sample mean to be $375 while the population standard deviation is $35. Using hypothesis testing, can the credit manager conclude the population mean is less than $380 at the 0.02 significance level?

b) After completing the hypothesis test, calculate the p-value and compare this to the level of significance, what can you conclude?

On the hypothesis testing questions you must use the five-step process. Make sure you make a statement at the end of each hypothesis test about the result of your test (ie. Don't just say for example "Reject the null", at the end of your test, you would say something like "Reject the null, therefore the mean salary of doctors in BC is greater than $105,000")