The average cost of tuition and room and board at a small private liberal arts college is reported to be $8,500 per term, but a financial administrator believes that the average cost is higher. A study conducted using 350 small liberal arts colleges showed that the average cost per term is $8,745. The population standard deviation is $1,200. Let α = 0.05. What is the critical z value for this test?
A)+1.960
B)-1.960
C)+1.645
D)-1.645

Question

Quizplus · Accepted Answer

This is a one-tailed test (right-tailed) because the administrator believes the average cost is higher. For a significance level of α = 0.05 in a one-tailed test, the critical z value is +1.645.

The Average Cost of Tuition and Room and Board at a Small