All 423 Wisconsin Public Schools Were All Given a Rating

question 51

Essay

All 423 Wisconsin public schools were all given a rating by the Wisconsin Department of Public Instruction based on several variables. The mean rating reported was 71.5 and the standard deviation was 4.87. To do a follow-up study a random sample of 40 schools was selected. In this sample, the mean rating was 70.9. One of the researchers is alarmed, thinking the report may have been mistaken. Do you think this sample result is unusually low? Explain.

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Definitions:

Net Present Value

The difference between the present value of cash inflows and outflows over a period, used to evaluate the profitability of an investment.

Equity-Financed

Refers to funding a company's operations or projects through the sale of shares, rather than borrowing or using current assets.

Price Per Share

The market price of a single share of a company’s stock, representing the smallest unit of the company’s equity that investors can purchase.

Synergy Value

The additional value generated from the combining of two or more entities, often expected in mergers or acquisitions.