SCENARIO 9-9 The President of a University Claimed That the Entering Class

question 140

Multiple Choice

SCENARIO 9-9
The president of a university claimed that the entering class this year appeared to be larger than the entering class from previous years but their mean SAT score is lower than previous years.He took a sample of 20 of this year's entering students and found that their mean SAT score is 1,501 with a standard deviation of 53.The university's record indicates that the mean SAT score for entering students from previous years is 1,520.He wants to find out if his claim is supported by the evidence at a 5% level of significance.
-Referring to Scenario 9-9,which of the following best describes the Type I error?

• A)The president concludes that the mean SAT score of the entering students is lower than previous years when it is indeed not lower.
• B)The president concludes that the mean SAT score of the entering students is higher than previous years when it is indeed not higher.
• C)The president concludes that the mean SAT score of the entering students is not lower than previous years when it is indeed lower.
• D)The president concludes that the mean SAT score of the entering students is not higher than previous years when it is indeed higher.

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Definitions:

Average Total Costs

The total cost of production (fixed and variable costs combined) divided by the quantity of output produced, representing the cost per unit of output.

Competitive Market

A market structure characterized by a large number of sellers and buyers where no single party can influence the price.

Market Price

The present value at which a service or asset is available for purchase or sale within a specific market.

Market Demand

The total quantity of a good or service that consumers in a market are willing and able to purchase at different prices.