To Plan the Course Offerings for the Next Year a University

question 73

Multiple Choice

To plan the course offerings for the next year a university department dean needs to estimate what impact the "No Child Left Behind" legislation might have on the teacher credentialing program. Historically, 40% of this university's pre-service teachers have qualified for paid internship positions each year. The Dean of Education looks at a random sample of internship applications to see what proportion indicate the applicant has achieved the content-mastery that is required for the internship. Based on these data he creates a 90% confidence interval of (33%, 41%) . Could this confidence interval be used to test the hypothesis H₀: p = 0.40 versus HA: p < 0.40 at the a = 0.05 level of significance?

• A) Yes, since 40% is not the center of the confidence interval he rejects the null hypothesis, concluding that the percentage of qualified applicants will decrease.
• B) No, because the dean should have used a 95% confidence interval.
• C) No, because the dean only reviewed a sample of the applicants instead of all of them.
• D) Yes, since 40% is in the confidence interval he accepts the null hypothesis, concluding that the percentage of applicants qualified for paid internship positions will stay the same.
• E) Yes, since 40% is in the confidence interval he fails to reject the null hypothesis, concluding that there is not strong enough evidence of any change in the percent of qualified applicants.

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Definitions:

Actual Cost

The actual expenses incurred in acquiring an asset or delivering a service, including all relevant expenditures without estimation.

Budgeted Cost

The estimated or planned amount of money allocated for a particular purpose or period of time.

Direct Materials Cost Variance

A measure that evaluates the difference between the actual costs of direct materials used in production and the standard costs.

Direct Materials Price Variance

Direct materials price variance is the difference between the actual cost of direct materials used in production and the standard cost, indicating how much more or less was spent than expected.