The Student Union claims that a population mean amount of spending of undergraduate students at the college is $250 per trimester on textbooks with a population standard deviation of $54. To test this hypothesis, a random sample of 144 undergraduate students is polled and the amount each student spent on textbooks during the trimester is recorded. The sample mean is $260 per trimester on textbooks.
REQUIRED:
a) At the 0.05 level of significance, is there evidence that the population mean amount of spending is different from $250 per trimester on textbooks?
b) At the 0.01 level of significance, is there evidence that the population mean amount of spending is different from $250per trimester on Mks?