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

question 181

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 II 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:

Accounts Receivable

Outstanding amounts due to a firm from customers for goods or services already delivered.

Cost of Goods Sold

Costs directly associated with the manufacturing of products that a business sells.

Collection Period

The standard timeframe for a corporation to collect receivables from its clientele.

Receivables Period

is the average number of days it takes for a business to collect payments from its customers after a sale has been made, indicating the efficiency of its credit and collection policies.