1. A recent study wants to examine the amount of student loan debt students are graduating with. Ten years ago students graduated with an average student loan debt equal to $21,600. Use the worksheet "student loans" to answer the following questions. There are 25 observations of student loan debt from recent college graduates.

1. Construct a 95% Confidence Interval around the population mean student loan debt. Report the upper and lower bounds and interpret this interval.
2. The researcher wants to determine if students are graduating with a different amount of student loan debt than $21,600. Specify the correct null and alternative hypotheses corresponding to this problem.

Ho : Ha :

1. Describe the Type I error associated with this question.
2. Let = 0.05. What is the conclusion of the test? Should there be a concern about the amount of student loan debt held by recent graduates? Justify the conclusion that you have suggested.