State University, a Very Large Public University, Has a Policy

question 65

Multiple Choice

State University, a very large public university, has a policy of granting faculty members a one-year sabbatical leave after a period of seven years of continuous employment.The leave is to be used for further study, research, or service.During the fiscal year ended 6/30/15, the university paid $3 million to faculty members on sabbatical leave and estimated that faculty members currently not on sabbatical leave earned $3.5 million toward sabbatical leaves they are likely to take in the future.The amount of sabbatical expenditures for the year ended 6/30/15 should be

• A)$0 million.
• B)$3 million.
• C)$3.5 million.
• D)$6.5 million.

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Definitions:

Hypothesis Test

A statistical method used to determine whether there is enough evidence in a sample of data to infer that a certain condition holds true for a larger population.

Critical Value

A point on the scale of the test statistic beyond which we reject the null hypothesis; it is determined by the chosen significance level.

Commuted

The act of reducing a legal penalty or sentence, often referring to changing a prison sentence to one that is less severe.

Hypothesis

An initial theory put forward with partial evidence to guide subsequent research.