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

question 60

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 is the test statistic for this test?

• A) \(\pm\)3.82
• B) 0.204
• C) -3.82
• D) +3.82