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:

Never-Married Single Parents

Individuals who have never been married and are raising their children alone, facing unique societal, emotional, and financial challenges.

Middle-Class Status

A socio-economic classification describing individuals or families with moderate income levels and economic stability.

Poverty

A state or condition where an individual or community lacks financial resources and essentials for a minimum standard of living.

Single-Mother Homes

Households headed by a female parent who does not have a partner or spouse living with her, often emphasizing the unique challenges and dynamics of such family structures.