The Department of Education Would Like to Test the Hypothesis

question 49

Multiple Choice

The Department of Education would like to test the hypothesis that the average debt load of graduating students with a bachelor's degree is equal to $17,000. A random sample of 34 students had an average debt load of $18,200. It is believed that the population standard deviation for student debt load is $4,200. The α is set to 0.05. The confidence interval for this hypothesis test would be ________.

• A) [$14,118.9, $19,881.2]
• B) [$14,839.1, $19,160.9]
• C) [$16,279.7, $17,720.3]
• D) [$16,788.22, $19,611.78]

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Definitions:

Annually

Occurring once every year.

Income Summary Account

An account used in the closing process to summarize the period's revenues and expenses before transferring the net income or loss to retained earnings.

Owner's Capital Account

Represents the total equity or investment that the owner has in the business, including initial investment and subsequent profits or losses.

Balance

The amount of money or value remaining in an account after accounting for debits and credits.