# Question

In past years the average number of errors in reports issued by the accounting section of Sterling Thompson, Inc. has been 5.2. The company now has a new reporting system in place. In a random sample of 36 recent reports issued under the new system, the average number of errors was 4.6. Can this sample result be used to support the claim that the average error rate for all reports issued under the new system will be less than the old average of 5.2? Use a 1% significance level. Let 5.2 be the null hypothesis and 5.2 be the alternative hypothesis. Assume that the standard deviation of errors for the population of new system reports is 1.8.

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