The Average Cost of Tuition, Room and Board at Community $\alpha$

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 $\alpha$ = 0.05. What are the null and alternative hypotheses for this study?

A) Null: $\mu$ $\le$ $12,000; alternative: $\mu$ > $12,000
B) Null: $\mu$ $\le$ $12,000; alternative: $\mu$ < $12,000
C) Null: $\mu$ $\le$ $11,500; alternative: $\mu$ > $11,500
D) Null: $\mu$ $\le$ $11,500; alternative: $\mu$ < $11,500