The average cost of tuition plus room and board for a small private liberal arts college is reported to be $8,500 per term,but a financial administrator believes that the average cost is higher. A study conducted using 350 small liberal arts colleges showed that the average cost per term is $8,745. The population standard deviation is $1,200. Let α = 0.05. What is the p-value for this test?
A)0.0000
B)0.0124
C)0.0500
D)0.4938

Question

Quizplus · Accepted Answer

The p-value is extremely low (0.0000), indicating strong evidence against the null hypothesis and supporting the administrator's belief that the average cost is higher than $8,500. This is calculated using a z-test for the mean, given the population standard deviation and the sample mean.

The Average Cost of Tuition Plus Room and Board for a Small