Question

A well know Statistical Institution claims that the average College tuition for a law degree costs at least thirty five thousand dollars. Analyzing a sample of fifty law schools in the vicinity of the study we found the sample had a mean tuition of $33,450 with a population standard deviation of $5,978 per year. At 2% level of significance test the Institution's claim.

Answer 1

Explanation:

Below are the null and alternative Hypothesis,

Null Hypothesis, H0: μ = 35000

Alternative Hypothesis, Ha: μ < 35000

Test statistic,

z = (xbar - mu)/(sigma/sqrt(n))

z = (33450 - 35000)/(5978/sqrt(50))

z = -1.83

P-value Approach

P-value = 0.0336

As P-value >= 0.02, fail to reject null hypothesis.

There is not sufficient evidence to conclude that the average College tuition for a law degree costs at least thirty five thousand dollars.