Question

Cate randomly samples the out-of-state tuition and fees for 25 public universities and found a mean of $20,340 with a standard deviation of $2,494. Using the alternative hypothesis that µ < $21,706, Cate found a z test statistic of -2.74. Given the data provided, what is the p-value of the z-test statistic?

Answer 1

0.003

Explanation:

Recall for a p-value, it must be a value that is as extreme and more extreme than the test statistics. If we go to the chart for the z-score and go to the row of -2.7 and to the column 0.04, we can see the value is 0.0031 or 0.003. Since the test is a one-tailed test (note that is less than, "<"), this is the p-value.