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QUESTION 8 It is estimated that the average person in the United States uses 123 gallons of water per day. Some environmentalists believe this figure is too high and conduct a survey of 40 randomly selected Americans. They find a mean of 113.03 gallons and a population standard deviation of 25.99 gallons. Calculate the $p$-value for this test statistic, and test the hypothesis at $a=.02$ using the $p$-value rule. $p$-value $=.0075<.02$, so reject the null hypothesis that the usage is more than 123 in favor of the alternative hypothesis that the average person uses less than 123 gallons per day. $p$-value $=.0075<.02$, so reject the null hypothesis that the usage is equal to 123 in favor of the alternative hypothesis that the average person uses less than 123 gallons per day. $p$-value $=.0075<.02$, so fail to reject the null hypothesis that the usage is equal to 123 in favor of the alternative hypothesis that the average person uses less than 123 gallons per day. $p$-value $=.0075<.02$, so reject the null hypothesis that the usage is less than 123 in favor of the alternative hypothesis that the average person uses less than 123 gallons per day.

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