This week, we are going through the hypothesis testing procedure.

• List each step of hypothesis testing, and for each step, in no less than two sentences, provide details on what is done in each step. After some consideration, the CEO of ABC Enterprises determined that the mean meal expenditure for the population is really about 58 dollars per day. Accountant X in ABC Enterprises has been collecting receipts from the company's travelers, and 58 dollars "felt wrong" to her. She had receipts from 16 employees on her desk. Upon averaging them, she found that the mean daily expenditure was 61 dollars with a standard deviation of 4 dollars. She set alpha at 0.05. We are going to conduct a hypothesis test to determine if the mean expenditure is different than 58 dollars.
• What is the null hypothesis?
• What is the alternative hypothesis?
• Is this test one-tailed, or two-tailed, and how do you know?
• Should this test use t or z, and how do you know?
• Show the math and compute your test statistic (z or t).
• What is your value of p? How did you get it?
• What is alpha?
• Is p greater or less than alpha?
• Should the null hypothesis be rejected or failed to be rejected? Why?
• What is your conclusion? Is the accountant correct?