The manager of the marketing division of Acme Corporation forecasts

an average monthly sales in 1978 of $65,000. In the first seven

months of 1978, the average monthly sales were $63,200, with a

standard deviation of $500. The management wishes to test the

hypothesis H_o that "statistically" the manager was right (H_o:

m = 65,000) against the alternative hypothesis that he was wrong in

his forecast (H_A: m /= 65,000), using a two-tail test. Assuming

normal distribution of monthly sales, which of the following

statements is true?

a. H_o is rejected at the 5 percent significance level but accepted

at the 1 percent significance level.

b. H_o is accepted at both the 5 percent and 1 percent significance

levels.

c. H_o is accepted at the 5 percent significance level but rejected

at the 1 percent significance level.

d. H_o is rejected at both the 5 percent and 1 percent significance

levels.

e. None of the above.