Kavita has been assigned the task of studying the average customer receipt for a branch of a major restaurant chain. The average receipt for the chain is $72.00 with a standard deviation of $11.00. The branch she is studying has an average bill of $67.00 for the last 40 receipts. She needs to know if this falls below the chain’s average. She will use a 1% level for significance because she does not want to inadvertently report the restaurants income as below average.

Upper-Tail Values

a: 5% 2.5% 1%

Critical z-values: 1.65 1.96 2.58


Which choice depicts the result for Kavita’s hypothesis test?
A. She should reject H0 : µ = 72 and accept Ha : µ < 72.
B. She should reject H0 : µ = 72 and accept Ha : µ not equal to 72.
C. She should accept H0 : µ = 72 and reject Ha : µ not equal to 72.
D. She should reject Ha : µ < 72 but cannot accept H0 : µ = 72.