Question

The program office budgets $30,000 per program review at the contractor’s site. Your concern for “end of year” spending drills is that you have budgeted enough forthe reviews (i.e. you are only concerned if the actual costs are higher than the $30,000 target). A sample of 16 trips yielded a mean of $32,500 and a standarddeviation of $3,500. Test the budgeted amount at the 90% level of confidence. Select the correct answer out of each pair of choices. (Carry intermediatecalculations to three decimal places.)