Question

The average cost of tuition and room and board at a small private liberal arts college is reported to be $8,500 per term. 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

Answer 1

D. +3.82

Explanation:

The computation of the test static for this test is shown below:

Data provided in the question

`\bar x`= $8,745

`\mu` = $8,500

`\sigma` = $1,200 and n = 350

Now based on the above information, the test static for this test is

`z = (\bar x - \mu)/((\sigma)/(√(n) ) )`

`z = (\$8,745 - \$8,500)/((\$1,200)/(√(350) ) ) \\`

= 3.82

= +3.82

Hence, the test static for this test is +3.82

We simply applied the above formula so that the correct value could come

And, the same is to be considered