Question: David Ricardo of Iron Law Inc claims that he meets
David Ricardo of Iron Law, Inc. claims that he meets the company standard of spending an average of “no more than $ 8 a day” on business lunches. As company auditor, you take a random sample of 12 of David’s recent lunch receipts and find that the average lunch check for the sample was $ 11.04, with a sample standard deviation of $ 3.40. Assume that the population of David’s lunch check amounts is normal. Using as the null hypothesis the proposition that David meets the company standard, and with a significance level of 1%, conduct the appropriate hypothesis test and report your results.
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