null and alternative hypothesis

The average cost of tuition, room and board at small private liberal arts colleges is reported to be $8,600 per term and a population standard deviation of $950, but a financial administrator believes that the average cost is higher. A study conducted using 200 small liberal arts colleges showed that the average cost per term is $8,660. Given

an alpha of 0.05. Establish the rejection region and calculate the test statistic. Determine the conclusion if the financial administrator believes that the average cost is higher.

Re: null and alternative hypothesis

Hey saradoyle.

Start off by stating your hypotheses, how to calculate the test statistic, and what distribution it comes from. This is an average so it involves a mean: what hypothesis tests deal with means?