TABLE 12-10
the Director of Admissions at a State College

question 118

True/False

TABLE 12-10
The director of admissions at a state college is interested in seeing if admissions status (admitted, waiting list, denied admission) at his college is independent of the type of community in which an applicant resides. He takes a sample of recent admissions decisions and forms the following table:
$$\begin{array} { l | l l l | l } & \text { Admitted } & \text { Wait List } & \text { Denied } & \text { Total } \\\hline \text { Urban } & 45 & 21 & 17 & 83 \\\text { Rural } & 33 & 13 & 24 & 70 \\\text { Suburban } & 34 & 12 & 39 & 85 \\\hline \text { Total } & 112 & 46 & 80 & 238\end{array}$$ He will use this table to do a chi-square test of independence with a level of significance of 0.01.
-Referring to Table 12-10, the same decision would be made with this test if the level of significance had been 0.005.

---

Definitions:

Inferior Good

A type of good for which demand decreases as the income of consumers increases, opposite to what is observed with normal goods.

Diminishing Marginal Utility

The principle that as a person consumes more of a good, the satisfaction (utility) gained from consuming an additional unit decreases.

Total Satisfaction

The total amount of pleasure or utility that a consumer receives from consuming a certain quantity of goods or services.

Utility-Maximizing

The process of adjusting consumption of goods and services to achieve the highest possible level of satisfaction or utility.