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 are the null and alternative hypotheses for this study? A) H₀: µ ≤ $9,000; H₁: µ $9,000 B) H₀: µ ≥ $9,000; H₁: µ $8,500 D) H₀: µ ≥ $8,500; H₁: µ

Question

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 are the null and alternative hypotheses for this study? A) H₀: µ ≤ $9,000; H₁: µ > $9,000 B) H₀: µ ≥ $9,000; H₁: µ < $9,000 C) H₀: µ ≤ $8,500; H₁: µ > $8,500 D) H₀: µ ≥ $8,500; H₁: µ < $8,500

Quizplus · Accepted Answer

The null hypothesis (H₀) is that the average cost is less than or equal to $8,500, and the alternative hypothesis (H₁) is that the average cost is greater than $8,500, as the administrator believes the cost is higher.

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