The average cost of tuition, room and board at community colleges is reported to be $8,500 per year, but a financial administrator believes that the average cost is higher. A study conducted using 150 community colleges showed that the average cost per year is $9,000 with a standard deviation of
$1,200. Let α = 0.05.
What is the critical z-value for this test?
A) +1.96
B) -1.96
C) +1.65
D) -1.65
E) None of these statements are true

Question

Quizplus · Accepted Answer

Since the test is one-tailed (the administrator believes the cost is higher), the critical z-value for α = 0.05 is +1.65.

The Average Cost of Tuition, Room and Board at Community