NARRBEGIN: Internet Classes
Internet Classes
a Survey of 25 Students

question 66

Multiple Choice

NARRBEGIN: Internet Classes
Internet Classes
A survey of 25 students was conducted to determine how they rate the quality of Internet classes. Students were asked to rate the overall quality from 0 (no quality at all) to 100 (extremely good quality) . The stem-and-leaf display of the data is shown below. $$\begin{array} { c | l } \text { Stem } & \text { Leaves } \\\hline 3 & 15 \\4 & 01457889 \\5 & 0134677 \\6 & 24568 \\7 & 29 \\8 & \\9 & 5\end{array}$$ NARREND
-A statistics professor classifies his students according to their grade point average (GPA) and their gender. The resulting cross-classification table is shown below. $$\begin{array}{l}\text { GPA }\\\begin{array} { | l | c c c | } \hline \text { Gender } & \text { Under 2.5 } & 2.5 - 3.5 & \text { Over 3.5 } \\\hline \text { Male } & 5 & 25 & 10 \\\text { Female } & 10 & 20 & 30 \\\hline\end{array}\end{array}$$ Which of the following describes the relationship between GPA and gender shown by this table?

• A)A higher percentage of females have GPAs over 3.5, compared to males.
• B)A lower percentage of females have GPAs over 3.5, compared to males.
• C)Females and males each have the same percentage of GPAs over 3.5.
• D)You cannot compare male and female GPAs because the total number in each group is not the same.

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Definitions:

Business Risk

The risk inherent in the operations of the firm, prior to the financing decision. Thus, business risk is the uncertainty inherent in a total risk sense, future operating income, or earnings before interest and taxes. Business risk is caused by many factors. Two of the most important are sales variability and operating leverage.

Standard Deviation

A statistical measure of the dispersion or variability of a set of data points, often used in finance to gauge investment risk.

Expected Earnings

The forecasted income of a company, often estimated by analysts based on historical data and future projections, indicating potential future profitability.

Miller Model

A theory on dividend policy developed by Merton Miller, which considers the impact of taxes and bankruptcy costs on a company’s optimal capital structure.