Grace Floral Shop claims that their average daily earnings is $497. An auditor wants to determine whether this claim is true. The auditor randomly selected a sample of 100 days and found that the...

Grace Floral Shop claims that their average daily earnings is $497. An auditor wants to determine whether this claim is true. The auditor randomly selected a sample of 100 days and found that the sample mean earnings was $495 with a sample standard deviation of 9.75.

a) Calculate the 97% confidence interval for the population's mean daily earning.

Assist the auditor in conducting a hypothesis test, at the 3% level of significance, to determine whether the claim about their average daily earnings was overstated.

b) State the null and the alternative hypothesis for this test.

c) Using the p-value approach, state the decision rule for this test.

d) Calculate the value of the test statistic for this test.

e) Calculate the p-value for this test?

f) State the conclusion of this test. Give reasons for your answer.