The Average Cost of Tuition Plus Room and Board at Small

question 65

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. What is the p-value for this test?

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

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Definitions:

Domestic Investment

The total amount of money invested in assets and businesses within a country's borders.

Economic Prosperity

A state of economic health and stability characterized by strong GDP growth, low unemployment, and high standards of living.

Foreign Direct Investment

An investment made by a firm or individual in one country into business interests located in another country, typically involving ownership of assets.

Population Growth Rate

The rate at which the number of individuals in a population increases in a given time period as a result of births, deaths, and migration, usually expressed as a percentage.