Suppose small business profit per week in a city, has been, on average, $25,000 per week over the last few years.

A researcher would like to know if the profit is increasing, by taking a random sample of 30 small businesses.

From the sample, the average weekly profit was $28,600 with a standard deviation of $2,050.

Assume the conditions are satisfied and do NOT need to be checked.

a) Write the hypotheses to test the researcher's claim.

b) Find the calculated test statistic.

c) Give the critical value, at = 0.01

d) If testing at = 0.01, give your decision, briefly explaining your reasoning.

e) Give the conclusion.

f) Describe a Type II error in the context of this question.