Question

The average student loan debt of a U.S. college student at the end of four years of college is estimated to be about $22,000. You take a random sample of 150 college students in the state of Wyoming and find that the mean debt is $19,850, and the sample standard deviation is $2,180.
(a) Construct a 95% confidence interval for the mean debt of all Wyoming college graduates.
(b) Construct a 98% confidence interval for the mean debt of all Wyoming college graduates.
(c) Is there evidence that the mean debt of all Wyoming college graduates is significantly different from the national average? To answer this research question, do the following:
         (1) State the hypotheses.
         (2) Calculate the test statistic.
         (3) Estimate the p-value, and state a decision.
         (4) Using the p-value, assess the strength of your decision.
         (5) Answer the research question.

Answer 1