QUESTION #2

The price of student dormitory accommodation on JSU campus has been constant for several years with mean = $3400 and standard deviation = $80 per semester. The JSU administration have claimed that this year they have lowered the average cost of oncampus accommodation. You test to see if this is true at the 5% level of significance. Assume that their sample of size 50 student accommodation costs gives a mean of $3260. Perform a hypothesis test at the 5% level of significance and state your decision.

List:

1. State the H0

2. State the H1

3. Choose alpha

4. Choose n

5. Choose Test

6. Set up critical value(s)

7. Collect data

8. Compute test statistic and p-value

9. Make statistical decision