SOLUTION: At a university, the average cost of books per student has been $600 per student per semester. The Dean of Students believes that the costs are increasing and that the average is n

Question 864799: At a university, the average cost of books per student has been $600 per student per semester. The Dean of Students believes that the costs are increasing and that the average is now greater than $600. He surveys a sample of 40 students and finds that for the most recent semester their average cost was $645 with a standard deviation of $75. What is the test value for this hypothesis test?

Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
At a university, the average cost of books per student has been $600 per student per semester. The Dean of Students believes that the costs are increasing and that the average is now greater than $600. He surveys a sample of 40 students and finds that for the most recent semester their average cost was $645 with a standard deviation of $75. What is the test value for this hypothesis test?
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Ho: u <= 600
Ha: u > 600 (claim)
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test stat:: t(645) = (645-600)/[75/sqrt(40)] = 3.79
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Note:: If you use a z-test
test stat = 45/75 = 0.6
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Cheers,
Stan H.
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