The Dean of a Faculty of Business in Victoria Believes

question 36

Essay

The dean of a faculty of business in Victoria believes that students who do well in 'soft' courses like organisational behaviour do poorly in 'hard' courses like business statistics. In order to test his belief, he takes a random sample of 10 students and records their test grades in organisational behaviour and statistics. The results are shown below. Do these data provide sufficient evidence at the 5% significance level to support the dean's claim? $$\begin{array} { | c | c | c | } \hline \text { Student } & \begin{array} { c } \text { Organisational } \\\text { B ehaviour Grade }\end{array} & \begin{array} { c } \text { Business Statistics } \\\text { Grade }\end{array} \\\hline 1 & \text { C } & \text { A } \\\hline 2 & \text { D } & \text { A } \\\hline 3 & \text { A } & \text { C } \\\hline 4 & \text { B } & \text { C } \\\hline 5 & \text { A } & \text { D } \\\hline 6 & \text { C } & \text { B } \\\hline 7 & \text { B } & \text { C } \\\hline 8 & \text { A } & \text { C } \\\hline 9 & \text { C } & \text { A } \\\hline 10 & \text { B } & \text { C } \\\hline\end{array}$$

---

Definitions:

Long Run

A period in economics sufficient for all markets to adjust, including production levels, prices, and resource allocation, often contrasted with the short run where some factors are fixed.

Efficient Output

The level of production at which a firm or economy is producing at minimum average total cost, optimizing resource use.

Demand Curve

a graph showing the relationship between the price of a good and the quantity of that good which consumers are willing to purchase at various prices.

MR Curve

In economics, the Marginal Revenue curve shows how the revenue generated from selling one additional unit of a good or service changes with quantity sold.