Students Who Graduated from College in 2010 with Student Loans

question 66

Essay

Students who graduated from college in 2010 with student loans owed an average of $25,250 (TheNew York Times,November 2,2011).An economist wants to determine if the average debt has increased since 2010.She takes a sample of 40 recent graduates and finds that their average debt was $28,275.Assume that the population standard deviation is $7,250.
a.Specify the competing hypotheses to determine whether the average undergraduate debt has increased since 2001.
b.Calculate the value of the test statistic and the p-value.
c.At the 5% significance level,can you conclude that the average undergraduate debt has increased? Explain.

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Definitions:

Levator Veli Palatine

A muscle in the oral cavity that elevates the soft palate during swallowing and speaking to prevent food from entering the nasal passages.

Soft Palate

The soft tissue constituting the back of the roof of the mouth, separating the mouth from the nasopharynx.

Middle Constrictor

A muscle that encircles the pharynx, responsible for constriction during swallowing to push food into the esophagus.

Hyoid Bone

A U-shaped bone in the neck that supports the tongue and is connected to muscles of the jaw, larynx, and pharynx.