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5% or 0.05 is the area of the right tail. The important X value is the critical value at the start of the corresponding critical region.
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the normal pdf has a mean of 160 and std dev of 6/sqrt(5)
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Youre testing whether the sample mean of 132+alpha/5 lies in, or outside the critical region.
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1.64 represents how many standard deviations (6/sqrt(5)) is the critical value greater than the mean (160). Multiplying 6/sqrt(5) by 1.64 and adding it to 160, gives the critical value.
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