The Department of Education would like to test the hypothesis that the average debt load of graduating students with a Bachelor's degree is equal to $17,000. A random sample of 34 students had an average debt load of $18,200. It is believed that the population standard deviation for student debt load is $4,200. The Department of Education would like to set α = 0.05. Which one of the following statements is true? Because the p-value is greater than α, we fail to reject the null hypothesis and cannot conclude that the average debt load is not equal to $17,000. Because the p-value is less than α, we fail to reject the null hypothesis and conclude that the average debt load is not equal to $17,000. Because the p-value is greater than α, we fail to reject the null hypothesis and conclude that the average debt load is equal to $17,000. Because the p-value is less than α, we reject the null hypothesis and conclude that the average debt load is equal to $17,000.

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.4: Distributions Of Data
Problem 19PFA
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  1. The Department of Education would like to test the hypothesis that the average debt load of graduating students with a Bachelor's degree is equal to $17,000. A random sample of 34 students had an average debt load of $18,200. It is believed that the population standard deviation for student debt load is $4,200. The Department of Education would like to set α = 0.05. Which one of the following statements is true?
       
    Because the p-value is greater than α, we fail to reject the null hypothesis and cannot conclude that the average debt load is not equal to $17,000.
       
    Because the p-value is less than α, we fail to reject the null hypothesis and conclude that the average debt load is not equal to $17,000.
       
    Because the p-value is greater than α, we fail to reject the null hypothesis and conclude that the average debt load is equal to $17,000.
       
    Because the p-value is less than α, we reject the null hypothesis and conclude that the average debt load is equal to $17,000.

 

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