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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 for the 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 standard deviation of $3,500. Test the budgeted amount at the 80% level of confidence. Select the correct answer out of each pair of choices. (Carry intermediate calculations to three decimal places.)
Please select the correct answer of 1-4:
1. a) The tp is 1.341
b) The tp is 0.866
2. a) The tc is 11.429
b) The tc is 2.857
3. a) We would REJECT the null hypothesis
b) We would FAIL TO REJECT the null hypothesis
4. a) We would conclude that it is reasonable to use the $30,000 budget figure
b) We woud recommend revising the budget figure
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