1) The average cost of tuition, 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 has not changed. A study conducted using 350 small liberal arts colleges showed that the average cost per term is $8,745 with a standard deviation of $1,200. Conduct a test to find out if the administrator's claim is correct at a 5% level of significance. a. State the null hypothesis and the alternative hypothesis b. State the decision rule of the Critical value method c. Compute the value of the test statistic d. What is your decision regarding the null hypothesis using the P value method?