Statistical Abstracts (117th edition) reports that the average amount spent annually for food by householders under 25 years of age is $2,690. A random sample of 16 people under 25 years of age who live in a university neighborhood were surveyed. The survey showed that they spent a sample mean amount of $3,220 with sample standard deviation $750. Test the claim that the mean for this neighborhood is different from the national average. Use a 5% significance level. Assume our data is normally distributed.

a) State the null and alternate hypotheses.

b) Would you perform a one-tailed or two-tailed test? Why?

c) State the test statistic and p-value for your test. Round your answers to four decimal places.

d) Explain your conclusion to reject or fail to reject the null hypothesis in terms of p and .

e) Interpret your conclusion in the context of this problem.