The Department of Education would like to test the hypothesis that the average debt load of graduating students with a Bachelor's degree is equal to $17,000. A random sample of 34 students had an average debt load of $18,200. It is believed that the population standard deviation for student debt load is $4,200. The Department of Education would like to set α = 0.05. The critical value for this hypothesis test would be _____ .
A)2.33
B)1.645
C)1.28
D)1.96

Question

Quizplus · Accepted Answer

Given that the population standard deviation is known and a significance level (α) of 0.05 is set for a two-tailed test, the critical value corresponds to the Z-score for a 95% confidence interval, which is 1.96.

The Department of Education Would Like to Test the Hypothesis