Suppose a technician claims that hermonthly repairsare less than 50 units, on average. Several of hercoworkers do not believe her, so the technician decides to do a hypothesis test, at a 10% significance level, to persuade them. Sherecords data from16 previous months and works through the testing procedure:

• H0: =50; Ha: <50
• x=41
• =6
• =0.1 (significance level)
• The test statistic isz0=x0n=4150616=6
• The critical value is z0.1=1.28.

Conclude whether to reject or not reject H0, and interpret the results.

Select the correct answer below:

1. Reject H0. At the 10% significance level, the test results are not statistically significant and at best, provide weak evidence against the null hypothesis.
2. Reject H0. At the 10% significance level, the data provide sufficient evidence to conclude that the meanmonthly repairsisless than 50 units.
3. Do not reject H0. At the 10% significance level, the test results are not statistically significant and at best, provide weak evidence against the null hypothesis.
4. Do not reject H0. At the 10% significance level, the data provide sufficient evidence to conclude that the mean smonthly repairsisless than 50 units.