To study the average amount of debts in Canada, 100 Canadianswere surveyed. The amount of debt of each one wasrecorded. The sample gave an average of 28110 CAD withstandard deviation of 3500 CAD. It is believed that the actualmean value of the debt in Canada is 27500. Given ourdata, we would like to test if the actual mean of debt is higherthan 27500.
(A) State the null and alternative hypotheses and computethe value of the test statistic.
(B) Compute the p-value for this test
(C) Draw a conclusion by comparing the p-value you obtainedin part (B) to α = 0.05.