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 is the critical z value for this test?

Answer 1

Answer:

H₀: µ ≤ $8,500; H₁: µ > $8,500

z= +1.645

Step-by-step explanation:

From the given problem  As average cost of tuition and room and board at a small private liberal is less than the financial administrator As hypothesis is true.

As standard deviation is $ 1,200

α = 0.05

H₀: µ ≤ $8,500

if the null hypothesis is true then value for critical z is +1.645.