Testing Hypotheses: One Sample Tests

Each day, the United States Customs Service has historically intercepted about $28 million in contraband goods being smuggled into the country, with a standard deviation of $16 million per day. On 64 randomly chosen days in 1992, the U.S. Customs Service intercepted an average of $30.3 million in contraband goods. Does this sample indicate (at a 5 percent level of significance) that the Customs Commissioner should be concerned that smuggling has increased above its historic level?

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