The average cost of tuition, room and board at the small private liberal arts colleges is reported to be $8,700 per term and population standard deviation of $900, but financial administrator thinks that the average cost is higher. A study conducted using 300 small liberal arts colleges showed that the average cost per term is $8,875. Given an alpha of 0.05:
a) Determine the null and alternative hypothesis
b) Establish the rejection region and calculate the test statistic
c) Find out the conclusion if the financial administrator thinks that the average cost is higher.