Suppose that I am planning to open a coffee shop around the university that is located in the downtown. I will engage in this investment if the number of students visiting the campus averages more than 100 per hour. Assume that the sample mean of the number of students visits the campus for each of 40 hours is 106. In addition, assume that the population standard deviation is 16.

Using the information above, at the 1% significance level, can you suggest me to invest in this business (opening up the coffee shop)?

(i) Formulate the hypothesis (2 Points)

(ii) State your conclusion using the critical value approach with a distribution graph (4 Points)

(iii) State your conclusion using the p-value approach with a distribution graph (4

Points)