A real estate agent believes that the average closing cost of purchasing a new home is at least $6,500 over the purchase price.

A real estate agent believes that the average closing cost of purchasing a new home is at least $6,500 over the purchase price. To prove this, she randomly selects 40 new homes sales and finds that the average closing costs are $6,600. The standard deviation is equal to $120. At the .05 level of significance, is her claim correct?

What is the z or t score?

Question 1 options:

A) 

1.96

B) 

2.575

C) 

1.684

D) 

1.645