Form a Conclusion About Statistical Significance

question 52

Essay

Form a conclusion about statistical significance. Do not make any formal calculations. Either use the results provided or make subjective judgments about the results.
Last year, the average math SAT score for students at one school was 475. The headmaster
introduced new teaching methods hoping to improve scores. This year, the mean math SAT
score for a sample of students was 481. Is there statistically significant evidence that the new
teaching method is effective? If the teaching method had no effect, there would be roughly a 3
in 10 chance of seeing such an increase. Does the result have statistical significance? Why or
why not? Does the result have practical significance?

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Definitions:

Aggregate Demand

This term refers to the total amount of goods and services demanded in the economy at a given overall price level and in a given time period.

Laissez Faire

An economic policy or attitude of letting markets operate without government interference or regulation.

Recessions

Periods of temporary economic decline during which trade and industrial activity are reduced, typically recognized by a fall in GDP in two successive quarters.

Depression

A severe and prolonged downturn in economic activity, characterized by significant declines in GDP, high unemployment, reduced consumer spending, and deflation.