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 α is set to 0.05. The confidence interval for this hypothesis test would be ________.
A) [$14,118.9, $19,881.2]
B) [$14,839.1, $19,160.9]
C) [$16,279.7, $17,720.3]
D) [$16,788.22, $19,611.78]

Question

Quizplus · Accepted Answer

The confidence interval is calculated using the formula for a z-confidence interval: mean ± (z * (σ/√n)). With a sample mean of $18,200, population standard deviation of $4,200, sample size of 34, and z-value for 95% confidence (1.96), the interval is [$16,788.22, $19,611.78].

The Department of Education Would Like to Test the Hypothesis