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.

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Definitions:

Long-Run Equilibrium

A situation in which, over time, supply and demand balance, causing prices to stabilize and firms to neither enter nor exit an industry.

Monopolistically Competitive Industry

A market structure characterized by many producers selling differentiated products, leading to competition based on product features as well as price.

ATC

The total cost per unit of output, calculated by dividing the total cost by the amount of output produced.

Long-Run Equilibrium

A state in which all factors of production are fully adjusted to the economic conditions, leading to a situation where there is no tendency for change.