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 ? = 0.05. The correct hypothesis statement for this hypothesis test would be _____ A)H₀: µ × $17,000; H₁: µ = $17,000. B)H₀: µ c $17,000; H₁: µ

Question

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 ? = 0.05. The correct hypothesis statement for this hypothesis test would be _____ A)H₀: µ × $17,000; H₁: µ = $17,000. B)H₀: µ c $17,000; H₁: µ < $17,000. C)H₀: µ = $17,000; H₁: µ × $17,000. D)H₀: $$\bar { x }$$ = $17,000; H₁: $$\bar { x }$$×$17,000.

Quizplus · Accepted Answer

The correct hypothesis statement for testing if the average debt load is equal to a specific value involves setting up a null hypothesis (H0) that the population mean (µ) is equal to that value, and an alternative hypothesis (H1) that the population mean is not equal to that value. Option C correctly states the null hypothesis as µ = $17,000 (indicating the hypothesis that the Department of Education wants to test - that the average debt is $17,000), and the alternative hypothesis as µ ≠ $17,000 (indicating any average debt load different from $17,000, which is what they are trying to find evidence for or against).

The Department of Education Would Like to Test the Hypothesis xˉ\bar { x }xˉ

The Department of Education Would Like to Test the Hypothesis $\bar { x }$