Apex is a renowned female clothing brand and they examine the feasibility of opening a new shop in one of the colonized cities in Rural Sydney. As per the marketing manager of the company mean clothing expenditure per household in the surrounding neighborhood is one of the key factors for their decision. Based on a 20-household sample survey, they found that mean annual expenditure in cloths is $387 and standard deviation is $60.

Following the 6-step process of hypothesis testing, you are required to examine whether company can conclude at the 5% significance level that the population mean annual expenditure is less than $400.