The Average Cost of Tuition, Room and Board at Community

Multiple Choice

The average cost of tuition, room and board at community colleges is reported to be $8,500 per year, but a financial administrator believes that the average cost is higher. A study conducted using 150 community colleges showed that the average cost per year is $9,000 with a standard deviation of
$1,200. Let α = 0.05.
What are the null and alternative hypotheses for this study?

A) Null: μ ≤ $9,000; alternative: μ > $9,000
B) Null: μ ≤ $9,000; alternative: μ < $9,000
C) Null: μ ≤ $8,500; alternative: μ > $8,500
D) Null: μ ≤ $8,500; alternative: μ < $8,500
E) None of these statements are true