The Average Cost of Tuition Plus Room and Board at for a Small

question 39

Multiple Choice

The average cost of tuition plus room and board at for a small private liberal arts college 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. The population standard deviation is $1,200. Let α = 0.05. What is the test statistic for this test?

• A)±3.82
• B)+0.204
• C)−3.82
• D)+3.82

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Definitions:

Inductive Logic

A method of reasoning in which general principles are derived from specific observations, moving from particular instances to broader generalizations.

Deductive Logic

A method of reasoning from one or more general statements (premises) to reach a logically certain conclusion, applying general principles to specific cases.

Hypothesis Testing

A statistical method that uses sample data to evaluate a hypothesis about a population parameter.

Operational Definition

Description of something that allows it to be measured.