Vancouver's municipal recycling program has been in effect for many years. But prior to beginning the program a study was undertaken to see whether it would be profitable to recycle newspapers. A financial analyst calculated that a profit could be made if the mean weekly newspaper collection from each household exceeded 2.0 pounds. In a feasibility study, a random sample of 150 households was drawn, and the weekly weight of newspaper discarded for recycling for each household was recorded. The mean was 2.18 pounds and the standard deviation 0.98 pounds. We will use this information to decide whether there is sufficient evidence of the profitability of newspaper recycling.

a) State the null hypothesis, the alternate hypothesis, and explain your choice of a one-sided or two sided alternative. Specify what the type 1 and type 2 errors would be.

b) carry out the hypothesis test at 5% significance level.

c) Construct a 95% confidence interval for your population mean. Does the CI support the conclusion of your hypothesis test? Explain how the two results are consistent.