Suppose that an Internal Revenue Service (IRS) representative claims that the average tax deduction for medical care is $1,250, and assume t

Suppose that an Internal Revenue Service (IRS) representative claims that the average tax deduction for medical care is $1,250, and assume that this variable is normally distributed. A taxpayer who believes that the deduction might be less than $1,250 decides to randomly sample 12 families who have an average deduction of $934 with a standard deviation of $616. a. What are the null and alternative hypotheses? b. What is the value of the test statistic, i.e. t-stat, in this example? Show your work. c. What is the p-value associated with this test statistic? (HINT: you have less than 30 observations so you will need to use t-table to obtain critical values.) d. What can you conclude at the 10-percent level of significance? What can you conclude at the 5-percent level of significance? Explain. (HINT: you have less than 30 observations so you will need to use t-table to obtain critical values.)