The average cost of tuition, room as well as board at small private liberal arts colleges is reported to be $8,700 per term and population standard deviation of $950, but financial administrator thinks that the average cost is higher. A study conducted using 300 small liberal arts colleges showed that average cost per term is $8,850. Given alpha of 0.05:
A) Describe the null and alternative hypothesis
B) Establish the rejection region and compute the test statistic
C) Find out the conclusion if the financial administrator belives that the average cost is higher.