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The cost of off-campus living for U of O students is normally distributed. The Office of...

The cost of off-campus living for U of O students is normally distributed. The Office of the Registrar estimates that on average it costs students $1,150 per month to live off-campus. A student group suspects that the average cost of living is higher than what is listed by the registrars office. They decide to conduct a hypothesis test. The student group randomly surveys 18 students and finds that they pay an average of $1,275 per month with a standard deviation of $300.

What is the P-value of the appropriate hypothesis test?

Math   Statistics-And-Probability   
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Answer #1

Solution :

= 1150

=1275

S =300

n = 18

This is the right tailed test .

The null and alternative hypothesis is ,

H0 :    = 1150

Ha : > 1150

Test statistic = t

= ( - ) / S / n

= (1275-1150) /300 / 18

= 1.768

Test statistic = t =  1.768

P-value =0.0475

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