The Mean Annual Tuition and Fees for a Sample of 12

question 55

Multiple Choice

The mean annual tuition and fees for a sample of 12 private colleges was $40,500 with a standard deviation of $5,000 A dotplot shows that it is reasonable to assume that the population is Approximately normal. You wish to test whether the mean tuition and fees for private colleges is Different from $37,400. State a conclusion regarding H₀ . Use the $\alpha = 0.01$ level of significance.

• A) There is not enough information to draw a conclusion.
• B) Reject H₀. The mean annual tuition and fees appears to be different from $37,400.
• C) Do not reject H₀.

---

Definitions:

Short Run

A time period in economics during which at least one input, such as plant size, is fixed and cannot be altered.

Profit Maximization

The procedure through which a business identifies the pricing and production volume that yields the highest earnings.

Market Price

The price at which a good or service is offered in the marketplace.

Profit Maximization

A rephrased definition: The strategy or aim of a firm to achieve the highest profit possible, usually by adjusting outputs, prices, or production costs.