The Average Cost of Tuition Plus Room and Board at Small

question 38

Multiple Choice

The average cost of tuition plus room and board at small private liberal arts colleges 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. Based on the computed test statistic or p-value, what is our decision about the average cost?

• A) Equal to $8,500
• B) Greater than $8,500
• C) Less than $8,500
• D) Not equal to $8,500

---

Definitions:

Loyalty Program

A rewards program offered by a company to customers who frequently make purchases to encourage continuous buying.

Sweepstakes

A promotional drawing in which prizes are given away at no charge to the participants.

Contest

A competition where individuals or groups participate to win a prize or recognition by meeting or surpassing a specific challenge.

In-Store Displays

Promotional fixtures or arrangements in retail environments designed to attract customer attention and encourage purchases.