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

question 23

Multiple Choice

The average cost of tuition plus room and board 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 p-value for this test?

• A)0.0000
• B)0.0124
• C)0.0500
• D)0.4938

---

Definitions:

Unit Change

A change in the independent variable by one unit and its effect on the dependent variable, often analyzed in regression models or experiments to understand causal relationships.

Total Variation

In statistics, a measure of the overall variability in a dataset or the total amount by which values in a data set differ from the mean.

SSR

Sum of Squares due to Regression, a measure used in statistical models to quantify how well the model explains the variability of the data.

SSE

The sum of squared errors between observed and predicted values in regression analysis, indicating the discrepancy between data points and the regression line.