The treasurer of a municipality claims that the average net worth of families living in this municipality is P730,000. A random sample of 50 families selected from this area produced a mean net worth of P860,000 with SD of P65,000. Using 1% level of significance level. Can we conclude that the claim is true?

a. What appropriate test statistics is applicable on the given problem mention above? (One tailed or Two tailed? ; z test of t test?)

b. What is the null hypothesis?

c. What is the alternative hypothesis?

d. Critical value?

e. z computed

f. Decision Rule: (reject the null hypothesis OR failed to reject null hypothesis)