Question

Spencer concluded her z-score calculation, and figured out that the p-value was 0.042, which indicated that they should reject the null hypothesis. “I have another question, Spencer, or rather another idea,” said Tasha. “Suppose we look at attending a public university in a neighboring state. We may end up paying more in tuition and fees than we would if we were in-state students, but maybe it will be less expensive than a private university.” Spencer said, “Tasha, that’s not only an alternative worth considering, but it’s also another way we could apply our knowledge of statistics. According to the article, what is the cost of public university in our neighboring state?” “It’s $20,340,” said Tasha. “And the average tuition and fees for all public universities is $21,706, with a standard deviation of $2,494.” “Awesome, Tasha,” said Spencer. “I’ll take a random sample of tuition and fees for 25 public universities for out-of-state students, and from that I calculate a z-test statistic of -2.74.” Using the alternative hypothesis that < $21,706, which two statements are true? Approximately 0.3% of public universities charge above the average amount of tuition and fees for out-of-state students. Approximately 0.6% of public universities charge below the average amount of tuition and fees for out-of-state students. Approximately 0.6% of public universities charge above the average amount of tuition and fees for out-of-state students. The p-value is 0.0031. Approximately 0.3% of public universities charge below the average amount of tuition and fees for out-of-state students. The p-value is 0.0062. 2 items need to be selected. Submit My Answer You have 3 attempts to answer this question correctly.

Answer 1

P-value = P(Z<-2.74) = 0.0031.

The p-value is 0.0031. Approximately 0.3% of public universities charge below the average amount of tuition and fees for out-of-state students.​