For the following exercises where applicable:

a. State the hypotheses and identify the claim.
b. Find the critical value(s).
c. Compute the test value.
d. Make the decision.
e. Summarize the results.
Use the traditional method of hypothesis testing unless otherwise specified. Assume all variables are normally distributed.

Find the 95% confidence interval for the mean in Exercise 16. Is µ contained in the interval?

Data from in Exercise 16

A real estate agent believes that the average closing cost of purchasing a new home is $6500 over the purchase price. She selects 40 new home sales at random and finds that the average closing costs are $6600. The standard deviation of the population is $120. Test her belief at α = 0.05.