Question

The Department of Education would like to test the hypothesis that the average debt load of graduating students with a Bachelor's degree is equal to $17,000. A random sample of 34 students had an average debt load of $18,200. It is believed that the population standard deviation for student debt load is $4,200. The Department of Education would like to set α = 0.05. The critical sample means for this hypothesis test would be

Question options:

	$14,118.9, $19,881.2
	$14,839.1, $19,160.9
	$15,588.2, $18,411.8
	$16,279.7, $17,720.3

Answer 1

Critical value

士>a/2 士20.025 - +1.96

$z=\frac{x-\mu}{\sigma/\sqrt{n}}$

$x=\mu+z*\sigma/\sqrt{n}$

µ = 17000

0 = 4200

$x_L=17000-1.96*4200/\sqrt{34}=15588.2$

$x_U=17000+1.96*4200/\sqrt{34}=18411.8$

Option-C) $15,588.2, $18,411.8