SCENARIO 12-11 The Director of Admissions at a State College Is Interested

question 48

True/False

SCENARIO 12-11
The director of admissions at a state college is interested in seeing if admissions status (admitted,
waiting list, denied admission)at his college is independent of the type of community in which an
applicant resides.He takes a sample of recent admissions decisions and forms the following table: He will use this table to do a chi-square test of independence with a level of significance of 0.01.
-True or False: Referring to Scenario 12-11, the p-value of this test is greater than 0.01.

---

Definitions:

Fixed Cost

Costs that do not change with the level of output produced, such as rent and salaries.

Profits

The financial gain obtained when the revenue from business activities exceeds expenses, costs, and taxes.

Collusion

An agreement, usually secretive, between two or more parties to limit competition and manipulate prices for their benefit.

Quantity Output

The total amount of goods or services produced by a business, sector, or economy.