The Average Cost of Tuition, Room and Board at Small $\le$

Multiple Choice

The average cost of tuition, room and board at small private liberal arts colleges is reported to be $8,500 per term, but 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 with a standard deviation of $1,200. Let = 0.05. What are the null and alternative hypotheses for this study?

A) Null: µ $\le$ $9,000; alternative: µ > $9,000
B) Null: µ $\ge$ $9,000; alternative: µ < $9,000
C) Null: µ $\le$ $8,500; alternative: µ > $8,500
D) Null: µ $\ge$ $8,500; alternative: µ < $8,500