1. The Veterans Health Administration allocates a budget for mental health administration costs to treat depression of post 9/11 foreign war veterans. The rates of depression have risen each year since 9/11. At the same time, veteran suicide rates are rising. Studies have shown this has been due to several reasons; including post foreign war PTSD, homelessness, addiction and unemployment. Annually the budget is reviewed and currently, we are advocating to increase financial allotment for veteran's mental health treatment (part of the overall healthcare budget). We want to test a claim that the average veterans cost of healthcare is more than the Veterans Health Administration claims of $6000 per veteran, per year. In a random sample of 45 veterans, the average healthcare per veteran is $6500 with an estimated standard deviation of $300. Given this information, what would your conclusion be using a significance level of 0.01?

1. Fail to reject H₀ and conclude there is not sufficient evidence to support the claim.
2. Fail to reject H₀ and conclude there is sufficient evidence to support the claim.
3. Accept H₀ and conclude there is sufficient evidence to support the claim.
4. Reject H₀ and conclude there is not sufficient evidence to support the claim.
5. Reject H₀ and conclude there is sufficient evidence to support the claim.