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: ì = 65,000) against the alternative hypothesis that he was wrong in his forecast (H₁: ì ≠ 65,000), using a two-tail test. Assuming normal distribution of monthly sales, which of the following statements is true?

Hint - Calculate Z statistics with given information and compare with critical value for 5% (1%) significance level  

None of the options.

H_o is rejected at the 5 percent significance level but accepted at the 1 percent significance level.

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

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

H_o is accepted at the 5 percent significance level but rejected at the 1 percent significance level.