Final answer:
To test the commercial's claim at the 0.01 level of significance, we will conduct a one-sample t-test.
Step-by-step explanation:
To test the commercial's claim at the 0.01 level of significance, we will conduct a one-sample t-test. We are looking to determine if the mean cost of a funeral is indeed above $5000 based on the sample data. The null hypothesis (H0) is that the mean cost is $5000 or less, and the alternative hypothesis (Ha) is that the mean cost is above $5000.
We will calculate the test statistic (t-value) using the formula: t = (mean - population mean) / (standard deviation / sqrt(n)). We will then compare the t-value to the critical t-value at the 0.01 level of significance, with degrees of freedom equal to (n - 1).
If the calculated t-value is greater than the critical t-value, we reject the null hypothesis and conclude that there is enough evidence to support the commercial's claim. If the calculated t-value is not greater than the critical t-value, we fail to reject the null hypothesis and conclude that there is not enough evidence to support the commercial's claim.