1. Incorrect. The answer is true.

H₀ : μ=1600, H_a: μ ≠ 1600. We should use a two-tailed tests because μ ≠ 1600 includes values both lager and smaller than 1600.

At a 5% level of significance, decision rule is to reject H_o if the z score is outside the range -1.96 to 1.96.

Under H₀, μ=1600 and using sample standard deviation as an estimate of s. Since Z=(`X-160)/12 = (1550-1600)/12=-4.1667 lies outside the range -1.96 to 1.96, we reject H₀ at 5% level of significance.