Answer:
The p-value of the test is 0.0041 < 0.05, which means that there is sufficient evidence at the 0.05 significance level to conclude that the mean cost has increased.
Step-by-step explanation:
The average undergraduate cost for tuition, fees, and room and board for two-year institutions last year was $13,252. Test if the mean cost has increased.
At the null hypothesis, we test if the mean cost is still the same, that is:
![H_0: \mu = 13252](https://tex.z-dn.net/?f=H_0%3A%20%5Cmu%20%3D%2013252)
At the alternative hypothesis, we test if the mean cost has increased, that is:
![H_1: \mu > 13252](https://tex.z-dn.net/?f=H_1%3A%20%5Cmu%20%3E%2013252)
The test statistic is:
We have the standard deviation for the sample, which means that the t-distribution is used to solve this question
![t = \frac{X - \mu}{\frac{s}{\sqrt{n}}}](https://tex.z-dn.net/?f=t%20%3D%20%5Cfrac%7BX%20-%20%5Cmu%7D%7B%5Cfrac%7Bs%7D%7B%5Csqrt%7Bn%7D%7D%7D)
In which X is the sample mean,
is the value tested at the null hypothesis, s is the standard deviation and n is the size of the sample.
13252 is tested at the null hypothesis:
This means that ![\mu = 13252](https://tex.z-dn.net/?f=%5Cmu%20%3D%2013252)
The following year, a random sample of 20 two-year institutions had a mean of $15,560 and a standard deviation of $3500.
This means that ![n = 20, X = 15560, s = 3500](https://tex.z-dn.net/?f=n%20%3D%2020%2C%20X%20%3D%2015560%2C%20s%20%3D%203500)
Value of the test statistic:
![t = \frac{X - \mu}{\frac{s}{\sqrt{n}}}](https://tex.z-dn.net/?f=t%20%3D%20%5Cfrac%7BX%20-%20%5Cmu%7D%7B%5Cfrac%7Bs%7D%7B%5Csqrt%7Bn%7D%7D%7D)
![t = \frac{15560 - 13252}{\frac{3500}{\sqrt{20}}}](https://tex.z-dn.net/?f=t%20%3D%20%5Cfrac%7B15560%20-%2013252%7D%7B%5Cfrac%7B3500%7D%7B%5Csqrt%7B20%7D%7D%7D)
![t = 2.95](https://tex.z-dn.net/?f=t%20%3D%202.95)
P-value of the test and decision:
The p-value of the test is found using a t-score calculator, with a right-tailed test, with 20-1 = 19 degrees of freedom and t = 2.95. Thus, the p-value of the test is 0.0041.
The p-value of the test is 0.0041 < 0.05, which means that there is sufficient evidence at the 0.05 significance level to conclude that the mean cost has increased.