Using the example in Exercise 8.2, describe what we mean by the rejection region and the critical value.

Exercise 8.2

For the past year I have spent about $4 a day for lunch, give or take a quarter or so.

a) Draw a rough sketch of this distribution of daily expenditures.

b) If, without looking at the bill, I paid for my lunch with a $5 bill and received $.75 in change, should I worry that I was overcharged?

c) Explain the logic involved in your answer to (b).