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 $\alpha$ = 0.05. What are the null and alternative hypotheses for this study? A) Null: $\mu$ $\le$ $12,000; alternative: $\mu$ $12,000 B) Null: $\mu$ $\le$ $12,000; alternative: $\mu$ $11,500 D) Null: $\mu$ $\le$ $11,500; alternative: $\mu$

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 $\alpha$ = 0.05. What are the null and alternative hypotheses for this study? A) Null: $\mu$ $\le$ $12,000; alternative: $\mu$ > $12,000 B) Null: $\mu$ $\le$ $12,000; alternative: $\mu$ < $12,000 C) Null: $\mu$ $\le$ $11,500; alternative: $\mu$ > $11,500 D) Null: $\mu$ $\le$ $11,500; alternative: $\mu$ < $11,500

Quizplus · Accepted Answer

The null hypothesis typically states there is no effect or no difference, so it would assert that the average cost is $11,500 or less, matching the reported average. The alternative hypothesis, given the administrator's belief that the cost is higher, would suggest that the average cost is greater than $11,500.

The Average Cost of Tuition, Room and Board at Community α\alphaα

The Average Cost of Tuition, Room and Board at Community $\alpha$