In: Statistics and Probability
The mean annual tuition and fees for a sample of 7 private colleges was $ 28,104 with a standard deviation of $ 4,597 . A dotplot shows that it is reasonable to assume that the population is approximately normal. A researcher wants to test to see if the mean tuition and fees for private institutions differs from $30,000. Compute the P-value of the test.
Solution :
Given that,
Population mean = = 30000
Sample mean = = 28104
Sample standard deviation = s = 4597
Sample size = n = 7
This is a two tailed test.
The null and alternative hypothesis is,
Ho: 30000
Ha: 30000
The test statistics,
t = ( - )/ (s/)
= ( 28104 - 30000) / ( 4597 / 7)
= -1.091
p-value:
df = n - 1 = 6
p-value = 0.317
The p-value is 0.317