The State Insurance Commissioner Believes That the Mean Automobile Insurance

True/False

The state insurance commissioner believes that the mean automobile insurance claim filed in her state exceeds $1,700. To test this claim, the agency has selected a random sample of 20 claims and found a sample mean equal to $1,733 and a sample standard deviation equal to $400. They plan to conduct the test using a 0.05 significance level. Given this, the appropriate null and alternative hypotheses are H0 : ≤ $1,700 HA : > $1,700