To address the problem, we first need to set up the null and alternative hypotheses. Given that we want to test if the mean tuition and fees for private institutions in California is less than $35,000, we can define our hypotheses as follows:
Null Hypothesis (H0): The mean tuition and fees for private institutions in California is equal to $35,000. \[ H_0: \mu = 35000 \]
Alternative Hypothesis (H1): The mean tuition and fees for private institutions in California is less than $35,000. \[ H_1: \mu < 35000 \]
This test is a left-tailed test because we are testing if the mean is less than a specific value.
Next, we calculate the test statistic using the following formula for the t-test statistic when the population standard deviation is unknown:
\[ t = \frac{\bar{x} - \mu_0}{s / \sqrt{n}} \]
Where:
- \(\bar{x} = 33500\) (sample mean)
- \(\mu_0 = 35000\) (hypothesized population mean)
- \(s = 7350\) (sample standard deviation)
- \(n = 14\) (sample size)
Substituting the values:
\[ t = \frac{33500 - 35000}{7350 / \sqrt{14}} \] \[ t = \frac{-1500}{7350 / \sqrt{14}} \approx \frac{-1500}{1963.36} \approx -0.764 \]
Next, we find the critical value and the p-value for our test. With \(n - 1 = 14 - 1 = 13\) degrees of freedom and a significance level of \(\alpha = 0.10\):
Using a t-table or calculator, the critical value for a left-tailed test at \(\alpha = 0.10\) with 13 degrees of freedom is approximately \(t_{critical} \approx -1.362\).
Now, we need to calculate the p-value. The t-distribution is used to find the p-value corresponding to the calculated t-statistic.
Using a t-distribution calculator or standard software, we find that:
\[ p \text{-value} = P(T < -0.764) \text{ with } df = 13. \]
Calculating this, we find the p-value is approximately \(0.227\).
Decision
Now, we compare the p-value to the significance level \(\alpha\):
- If \(p \text{-value} < \alpha\), we reject the null hypothesis.
- If \(p \text{-value} \geq \alpha\), we fail to reject the null hypothesis.
Since \(0.227 > 0.10\):
We fail to reject the null hypothesis.
Conclusion
At the 0.10 significance level, we do not have enough evidence to conclude that the mean tuition and fees for private institutions in California is less than $35,000.