# Question: according to usa today the average cost of a private...

###### Question details

According to USA Today, the average cost of a private university is $50,000 with a population standard deviation of $2,500. 100 universities are randomly selected and the average income of those 100 universities was $49,450. Using the 5 step hypothesis testing process can you support the claim that the average income is $50,000? Use a .05 significance level. Formulate the decision rule.

Choose one:

Reject Ho if z > 2.58 |

Reject Ho if -1.28 > z > 1.28 |

Reject Ho if -1.96 > z > 1.96 |

Reject Ho if z < -1.65 |