On average, a college student last year graduated with $27,200 in debt (The Boston Globe, May 27, 2012). A researcher collects data on debt from 40 recent undergraduates from Connecticut. The data set, labeled CT_Undergrad_Debt, can be found on the text website.
Assume that the population standard deviation is $5,000.
a. The researcher believes that recent undergraduates from Connecticut have more debt than the national average. Specify the competing hypotheses to test this belief.
b. Specify the critical value(s) of the test at the 10% significance level.
c. Compute the value of the test statistic.
d. Do the data support the researcher’s claim, at α = 0.10?