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

question 6

True/False

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,the null hypothesis would be rejected.

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Definitions:

Economic Payoff

The financial return or reward received from an investment or decision, measured in terms of profit or loss.

Equity

Fairness; everyone gets his or her fair share. Since people can disagree about what is “fair,” equity is not as well defined a concept as efficiency.

Rational Decision

The choice made by logically considering all available information, potential costs, and benefits to achieve the optimal outcome.

Bounded Rationality

A concept suggesting that decision-making is limited by the information available, cognitive limitations of the mind, and the finite amount of time available to make a decision.