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 $11,500 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 $12,000 with a standard
Deviation of $1,200. Let α = 0.05.
What are the null and alternative hypotheses for this study?

A) Null: μ ≤ $12,000; alternative: μ > $12,000
B) Null: μ ≤ $12,000; alternative: μ < $12,000
C) Null: μ ≤ $11,500; alternative: μ > $11,500
D) Null: μ ≤ $11,500; alternative: μ < $11,500