Question

*Be sure to show work that supports your answers.

*Include appropriate units in your answers.

2. (10 points) In 2016, the mean student loan debt was $25,460. In 2020, a random sample of 100 students resulted in a mean student loan debt of $31,372 with a standard deviation of $21,500.

At the 1% level of significance, test the claim that the mean student loan debt in the United States has increased by doing each of the following:

a) State the null and alternate hypotheses.

b) Test the claim using Classical (Traditional) Approach.

c) Explain how the results of your test either reject or fail to reject the null hypothesis.

d) Write a formal conclusion.

e) Does your test have statistical significance? Briefly explain.

f) Does your test have practical significance? Briefly explain

Answer 1