According to an estimate, the average total parent and student debt for new college graduates was $34,400 in 2010–11 (Time, October 31, 2011). A random sample of 500 of this year’s graduates showed that their average such debt is $38,460 with a standard deviation of $5600. Do the data provide significant evidence at a 1% significance level to conclude that the current average total parent and student debt for new graduates is higher than $34,400? Use both the p-value approach and the critical-value approach.
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