The Department of Education Would Like to Test the Hypothesis

Multiple Choice

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. Which one of the following statements is true?

A) Because the p-value is less than α, we fail to reject the null hypothesis and conclude that the average debt load is not equal to $17,000.
B) Because the p-value is greater than α, we fail to reject the null hypothesis and cannot conclude that the average debt load is not equal to $17,000.
C) Because the p-value is greater than α, we fail to reject the null hypothesis and conclude that the average debt load is equal to $17,000.
D) Because the p-value is less than α, we reject the null hypothesis and conclude that the average debt load is equal to $17,000.