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The Bureau of Labor Statistics reported that the average yearly income of dentists in the year 2014 was $116,000. Dr. Smith thinks there has been a significant increase in the average yearly income of dentists. He has a dataset of a sample of 81 dentists, which was taken in 2015, showed an average yearly income of $123,800. Assume the standard deviation of the population of dentists in 2015 is $36,000. Please answer the following questions:
(a) Develop appropriate null and alternative hypotheses such that rejection of H0 will support Dr. Smith's argument.
(b) Compute the test statistic.
(c) Determine the p-value; and at 95% confidence, test the hypotheses.
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