Question: Jane Smart, director of the New Directions Youth Center, is getting ready for another round of grant applications. To strengthen her applications, she wants to show whether New Directions’ per client costs are below the standard for other youth centers in her state, $500 per client. She has data on 100 client served over the past 6 months, which is in the spreadsheet.

Test whether the New Directions’ average per client cost is significantly different from the state benchmark. For simplicity, assume that per client cost is normally distributed. The data you need is in the file Lect8HWData.xls, which is in the Learning Module where you found this homework assignment.

a. Write the hypothesis set for your hypothesis test.

b. Use the Descriptive Statistics tool in Data Analysis Toolpak to get the descriptive statistics you need to test the hypothesis. Perform the hypothesis test using those statistics.

c. Write 1 to 3 sentences summarizing your conclusion from the test.