The Average Cost of Tuition, Room and Board at Small $\le$

question 19

Multiple Choice

The average cost of tuition, room and board at small private liberal arts colleges 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 with a standard deviation of $1,200. Let = 0.05. What are the null and alternative hypotheses for this study?

• A) Null: µ \(\le\)$9,000; alternative: µ > $9,000
• B) Null: µ \(\ge\) $9,000; alternative: µ < $9,000
• C) Null: µ \(\le\) $8,500; alternative: µ > $8,500
• D) Null: µ \(\ge\) $8,500; alternative: µ < $8,500

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