According to official data, the average annual expenditure on dental care in Kingston, Jamaica is at least $50,000 per person. A random sample of 250 persons showed that they spent an average of...

According to official data, the average annual expenditure on dental care in Kingston, Jamaica is at least $50,000 per person. A random sample of 250 persons showed that they spent an average of $49,000 on dental care last year with a standard deviation of $10,350. Test at the 5% significance level whether last year’s mean annual dental care expenditure per person in the parish was less than $50,000.

1. State the hypotheses to be tested.


2. Using a diagram, show the critical


3. Calculate the value of the test


4. What is the conclusion?