A financial administrator believes the average cost of tuition and room and board at a small...

A financial administrator believes the average cost of tuition and room and board at a small liberal arts college exceeds $8,500 per term. 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 p-value for this test?

0.0500

0.0000

0.4938

0.0124

Solutions

Expert Solution

Solution :

= 8500

=8745

=1200

n = 350

this is the RIGHT tailed test .

The null and alternative hypothesis is ,

H0 : = 8500

Ha : >8500

Test statistic = z

= ( - ) / / n

= (8745-8500) / 1200 / 350

=3.82

P(z >3.82 ) = 1 - P(z <3.82 ) = 1-0.9999=0.00001

P-value = 0.0000

orchestra answered 1 year ago

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