# A severe tornado recently touched down in Bryce County, Kansas.

A severe tornado recently touched down in Bryce County, Kansas. Government policy calls for emergency support if the average damage done to the population of all farms in the county exceeds \$ 20,000. At the moment, the government is not at all convinced that this criterion has been met. To demonstrate that average damage is more than the \$ 20,000 figure, you audit a simple random sample of 40 farms in the county and find that the average damage for the farms in the sample is \$ 21,100. Should this be considered sufficient sample evidence to convince a reluctant government agency to provide the emergency support? That is, is this sufficient evidence to reject a “? is no more than \$ 20,000” null hypothesis in favor of a “? is greater than \$ 20,000” alternative? To make your decision, determine the critical value for the test in \$ and compare the sample mean to the critical value. Use a significance level of 5%. Assume the population standard deviation is \$ 3700.