Please solve and show your work.

Please include formula and how you got to the answer.

Please include reasoning.

3. ABC is a company in a high technology industry. During the most recent industry cycle, its averaged revenue is $20 million per year with a standard deviation of $8 million (n = 10 observations). Management claims that ABC's performance during the most recent cycle results from new approaches and that we can dismiss profitability expectations based on its average revenues of $16 million per year in prior cycles. A) Let u represents the average revenue of ABC, formulate the null hypothesis and alternative hypothesis consistent with testing management team's claim. B) Assuming that ABC' revenue is at least approximately normally distributed, determine whether or not to reject the null hypothesis at 0.05 significance level