The Acton Paper Company employs a Human Resources manager who is given responsibility for employee benefits. The company is considering changing the insurance coverage offered to their employees. In her report to the CEO, she states that the average employee has, at most, $500 of dental expenses per year. You are given the responsibility of testing this claim. You randomly select 40 employees and find that their mean dental expense is $537 dollars, while the standard deviation is known to be $78. At the =0.05 level of significance, test the manager's claim. (Assume that the sample standard deviation can be used for .)
a) Identify the claim.