Answer
Step 1 : $H_0$: µ = 24 billion of dollars, $H_1$: µ $\gt$ 24 billion of dollars
Step 2: Since α = 1-0.05=0.95, and the test is a right-tailed test, the critical values are 1.645.
Step 3:
$\bar{X}$ = 31.7 billion dollars , µ = 24 billion dollars, σ = 28.7, n = 50
Test value = z = $\frac{\bar{X}- µ }{σ / \sqrt n}$
= $\frac{31.7- 24 }{28.7 / \sqrt 50}$
= 1.897
Step 4 : Since the test value falls beyond the critical value, the decision is to reject the null hypothesis.
Step 5: There is enough evidence to support the claim the researcher’s claim.
