Question: The Statistical Abstract of the United States (109^th edition) reported that the average cost per day of owning an automobile in the United States is $7.62 with standard deviation of $1.77. This includes the cost of the car, general maintenance, gasoline, and insurance. A random sample of 54 students who own cars found the average cost per day to be $6.78. Is the college student’s average daily expense less than the national average?

State your assumption(s).

State the null and alternate hypotheses and define parameters.

Determine which test statistic applies, and calculate it.

Determine the critical value(s).

State your decision: Should the null hypothesis be rejected?