QuestionThe average cost of tuition and room and board for a small private liberal arts college is reported to be $\$ 8,500$ per term, but a financial administrator believes that the average cost is lower. A study conducted using 350 small liberal arts colleges showed that the average cost per term is $\$ 8,745$. The population standard deviation is $\$ 1,200$. Let $\alpha=0.05$. What are the null and alternative hypotheses for this study?
Select one: a. $\mathrm{HO}: \mu=\$ 8,500 ; \mathrm{H1}: \mu \neq \$ 8,500$ b. $H O: \mu \geq \$ 8,500 ; H 1: \mu<\$ 8,500$ c. $H O: \mu \geq \$ 9,000 ; H 1: \mu<\$ 9,000$ d. $\mathrm{HO}: \mu \leq \$ 8,500 ; \mathrm{H} 1: \mu>\$ 8,500$ e. $H 0: \mu \leq \$ 9,000 ; H 1: \mu>\$ 9,000$
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