The average cost of tuition, room and board at small private liberal arts colleges is reported to be $8,745 per term, but a financial administrator believes that the average cost is less than this. A study conducted using 350 small liberal arts colleges showed that the average cost per term is $8,500 and the population standard deviation from previous studies is $1,200. Let = 0.05 .What are the null and alternative hypotheses for this study?

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The average cost of tuition, room and
board at small private liberal arts colleges
is reported to be $8,745 per term, but a
financial administrator believes that the
average cost is less than this. A study
conducted using 350 small liberal arts
colleges showed that the average cost per
term is $8,500 and the population standard
deviation from previous studies is $1,200.
Let = 0.05.What are the null and alternative
hypotheses for this study?
Transcribed Image Text:The average cost of tuition, room and board at small private liberal arts colleges is reported to be $8,745 per term, but a financial administrator believes that the average cost is less than this. A study conducted using 350 small liberal arts colleges showed that the average cost per term is $8,500 and the population standard deviation from previous studies is $1,200. Let = 0.05.What are the null and alternative hypotheses for this study?
A.
Null: µ < or = $9,000; alternative: µ >
$9,000
%3D
В.
Null: µ <or= $8,500; alternative: µ >
$8,500
С.
Null: µ >= $8,745; alternative: µ < $8,745
D.
Null: µ >or =$8,500; alternative: µ <
$8,500
Transcribed Image Text:A. Null: µ < or = $9,000; alternative: µ > $9,000 %3D В. Null: µ <or= $8,500; alternative: µ > $8,500 С. Null: µ >= $8,745; alternative: µ < $8,745 D. Null: µ >or =$8,500; alternative: µ < $8,500
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