Question

# The average cost of tuition, room and board at community colleges is reported to be \$11,500...

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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