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

question 108

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.
-True or False: Referring to Scenario 9-9, the president can conclude that there is sufficient
evidence to show that the mean SAT score of the entering class this year is lower than previous
years with no more than a 10% probability of incorrectly rejecting the true null hypothesis.

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Definitions:

Willingness To Pay

The maximum price a consumer is prepared to pay for a good.

Positively Sloped

Describes a graph or relationship where, as one variable increases, the other variable also increases, typical of a supply curve in economics.

Negatively Sloped

A graphical representation showing a decrease in one variable as another variable increases, often used in the context of demand curves.

Total Surplus

The sum of consumer surplus and producer surplus, representing the total net benefit to society from the production and consumption of goods and services.