Question

The average cost of tuition, room and board at community
colleges is reported to be $11,500 per year, but a financial
administrator believes that the average cost is higher. A study
conducted using 150 community colleges showed that the average cost
per year is $12,000 with a standard deviation of $1,200. Let α =
0.05.

What are the null and alternative hypotheses for this study?

Answer #1

Solution:

Here using give information we say that the hypothesis for this study is

We denot null hypothesis by H0 and alternative hypothesis by H1

Therefore hypothesis is

H0: average cost of tuition, room and board at community colleges is equal to $11,500 per year.

Vs

H1 : average cost of tuition, room and board at community colleges is not equal to $11,500 per year

I.e

H0 : mu = 11500

Vs

H1 : mu 11500

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