The average cost of tuition plus room and board at small private liberal arts college is reported to be $8,500 per term, but the financial administration believes that the average cost is higher. A student conducted using 150 small liberal arts colleges showed that the average cost per term is $8700. The population standard deviation is $1200. Let a = 0.02. Based on the computer test statistic, what is our decision about the average cost?
State your hypothesis: Ho:
H1:
Is this a one tail or two tail test?
What is the Test Static AND its value?
Critical Value:
p-value:
State your decision:
What is your decision about the hypothesis and why?
State your conclusion about the hypothesis in your words: