The average undergraduate cost of tuition, fees and books for atwo year college is $10,560. Four years later, a random sample 36two year colleges, had an average cost of tuition, fees and booksof $11,380 and a standard deviation of $1300, with a normaldistribution. At α = 2%, has the average cost of two-year collegeincreased?
1) Check and state the conditions for statistical inference.
2) Compute a 95% confidence interval for the average cost oftuition fees and books for a two year college.
3) Write a statement interpreting the confidence interval.
4) Write the null and alternate hypotheses.
5) Calculate the standard error and sketch the model, markingthe center and ± SD’s
6) Calculate the p-value, showing ALL the work.
7) State the conclusion, remember there are three parts.Remember that α =2% or α =.02.
