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A state executive claims that the average cost of tuition at public colleges is $5700. A...

A state executive claims that the average cost of tuition at public colleges is $5700. A researcher wishes to test the claim that this cost is greater than $5700. She selects a random sample of 36 public colleges and finds the mean to be $5950.The population standard deviation is $659. Is there enough evidence to support the claim that the cost of tuition is greater than $5700 at α = 0.05 ?

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Answer #1

n =36

Null and alternative hypothesis is

Level of significance = 0.05

Here population standard deviation is known so we use z-test statistic.

Test statistic is

Degrees of freedom = n - 1 = 36 - 1 = 35

α = 0.05

P-value = 0.0114 ( using z table)

P-value , Reject H0

conclusion : There is sufficient evidence to conclude that the average cost of tuition at public colleges  is greater than $5700

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