The Mean Annual Tuition and Fees for a Sample of 8

question 93

Multiple Choice

The mean annual tuition and fees for a sample of 8 private colleges was $33,700 with a standard deviation of $5,800. 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.
Compute the value of the test statistic and state the number of degrees of freedom.

• A) -1.804; 7 degrees of freedom
• B) -1.804; 8 degrees of freedom
• C) -0.638; 8 degrees of freedom
• D) -0.638; 7 degrees of freedom

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Definitions:

Minimum Efficient Scale

The smallest level of production at which a firm can achieve the lowest long-run average total costs.

Constant Returns to Scale

A situation in which the proportionate increase in inputs leads to an equal proportionate increase in outputs, meaning costs and outputs scale equally as production expands.

Diseconomies of Scale

A situation where a business's cost per unit increases as it produces more items, due to inefficiencies that arise with scaling up production.

Plant Size

Refers to the physical capacity or output level of a manufacturing or production facility.