The mean annual incomes of certified welders are normally distributed with the mean of $51,150 and a population standard deviation of $2,000. The ship building association wishes to find out whether their welders earn more or less than $51,150 annually. A sample of 100 welders is taken and the mean annual income of the sample is $51,460. If the level of significance is 0.05, what conclusion should be drawn?

a) Do not reject the null hypothesis as the test statistic is less than the critical value ofz.

b) Reject the null hypothesis as the test statistic is greater than the critical value oft.

c) Do not reject the null hypothesis as the test statistic is less than the critical value oft.

d) Reject the null hypothesis as the test statistic is greater than the critical value ofz.

The average cost of tuition plus room and board for a small private liberal arts college is reported to be $9,450 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 $9,790. The population standard deviation is $1,200. Let= 0.05. What is thep-value for this test?

Multiple Choice

a) 0.0000

b) 1.6050

c)0.6419

d) 0.0500