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 test statistic for this test?

A) ±3.82
B) +0.204
C) -3.82
D) +3.82