SOLUTION: The average student-loan debt is reported to be $25,235. A student believes that the student-loan debt is higher in her area. She takes a random sample of 100 college students in h

Question 1197670: The average student-loan debt is reported to be $25,235. A student believes that the student-loan debt is higher in her area. She takes a random sample of 100 college students in her area and determines the mean student-loan debt is $27,524 and the standard deviation is $6,000. Is there sufficient evidence to support the student's claim at a 5% significance level?
Is it safe to assume that n≤5%
of all college students in the local area?
No
Yes
Is n≥30?
Test the claim:
Determine the null and alternative hypotheses. Enter correct symbol and value.
H0: μ=
Determine the test statistic. Round to two decimals.
Find the
p
-value. Round to 4 decimals.

Answer by ewatrrr(24785) (Show Source): You can put this solution on YOUR website!
Ho: µ = $25,235
Ha: µ > $25,235
n = 100, x̄ = $27,524 s = $6000
n = 100 , n≥ 30, standard Z distribution will be used.
0.05 significance level, Critical value(df=99) = 1.6604 0r 1.645 standard
= 3.8167
3.8167 > 1.645 Reject Ho
P(z ≤ t-value) = .0001 < .05 Reject Ho
RELATED QUESTIONS
The average student-loan debt is reported to be $25,235. A student believes that the... (answered by Boreal)

In the next lesson, we will be discussing college student loan debt. If about 40 million... (answered by greenestamps)

It has been reported that the average credit card debt for college seniors at the college (answered by Boreal)

A report states that the average credit card debt for college seniors is $3262. The... (answered by stanbon)

A student purchased a car and received an interest free loan of $12,000 from his parents. (answered by ReadingBoosters,MathTherapy)

3. According to a PEW* Research Center survey, the mean student loan at graduation is... (answered by ikleyn)

A student had a car loan charging 0.75% interest per month and a tuition loan charging... (answered by richwmiller)

Student loans are a hot discussion topic today both in the news and at home. Those of us... (answered by solver91311)