The Average Cost of Tuition and Room and Board at a Small

Multiple Choice

The average cost of tuition and room and board at a small private liberal arts college 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. The population standard deviation is $1,200. Let α = 0.05. What is the critical z value for this test?

A) +1.960
B) -1.960
C) +1.645
D) -1.645