An executive in an accounting firm has claimed that the average tax return of their client base is $6,300. Suppose you drew a random sample of 36 tax returns from this firm and found an average return of $5,800 with a standard deviation of $2,400. Using a 5 percent level of significance, test the validity of this claim based upon the data given.

i. State the data type and parameter of interest.

Data type:

Parameter of interest:

ii. State the Null and Alternative hypotheses:

Ho:

HA:

iii. State the test statistic, the sampling distribution of the standardised test statistic and the level of significance. Verify the required conditions.

Test statistic:

Standardised test statistic:

Distribution of the standardised test statistic:

Level of significance:

Verification of the required conditions:

iv. State the decision rule:

v. Calculate the sample value of the test statistic and the p-value.

(You can either manually calculate or select the correct output and obtain the values)

Sample value of the test statistic:

p-value =

vi. Comparing the value obtained in part (v) with the decision rule in part (iv) and draw your conclusion about the null hypothesis.

vi. Based on sample data, is there enough evidence to conclude at the 5 percent level of significance that the claim is valid? Explain.

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z-Test of a Mean Sample mean Population standard deviation Sample size Hypothesized mean Alpha z Stat 5,800 2400 P(Z z-Test of a Mean Sample mean Population standard deviation Sample size Hypothesized mean Alpha z Stat 5,800 2400 P(Z