The Internal Revenue Service (IRS) reports that the average refund for tax filers last year was $ 2236. The IRS believes that this year’s average refund will be the same as last year’s average. The average refund in a random sample of 500 returns from this year is $ 2350. Given the following hypotheses, H0: μ = 2236 (The average refund this year is equal to last year’s average.) Ha: μ ≠ 2236 (The average refund this year is not equal to last year’s average.)
a. Compute the p value for the sample result. Assume the population standard deviation is $ 724.
b. If the significance level is 5%, can the null hypothesis be rejected? Explain.