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

question 81

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 p-value of this test is greater than 0.01.

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Definitions:

Productive Asset

Assets that are used by a business to generate revenue, which can include physical property, equipment, and machinery, among other items.

Residual Value

The estimated amount that an asset is expected to realize upon the end of its useful life after all depreciation or amortization has been accounted for.

Market Value

The current price at which an asset or service can be bought or sold in the market.

Depreciation

Depreciation is the accounting process of allocating the cost of tangible assets over their useful lives, reflecting the loss of value as the asset is used.