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?
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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