The Average Cost of Tuition, Room and Board at Community

question 194

Multiple Choice

The average cost of tuition, room and board at community colleges is reported to be $8,500 per year, but a financial administrator believes that the average cost is higher. A study conducted using 150 community colleges showed that the average cost per year is $9,000 with a standard deviation of
$1,200. Let α = 0.05.
What are the null and alternative hypotheses for this study?

• A) Null: μ ≤ $9,000; alternative: μ > $9,000
• B) Null: μ ≤ $9,000; alternative: μ < $9,000
• C) Null: μ ≤ $8,500; alternative: μ > $8,500
• D) Null: μ ≤ $8,500; alternative: μ < $8,500
• E) None of these statements are true

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Definitions:

Income Received

It refers to the total amount of money obtained by individuals or entities typically through employment, investments, or other sources.

Upper Quintiles

Refers to the top 20% of a population in terms of income or wealth distribution.

Line L

Represents the relationship between the quantity of labor hired and the amount of output produced, often used in economics to illustrate productivity.

Income Received

The total amount of money received by an individual or entity during a specified time frame, from all sources.