A Sample of 35 Students Enroll in a Program That $\bar { x } = 20$

question 64

Multiple Choice

A sample of 35 students enroll in a program that claims to improve scores on the quantita reasoning portion of the Graduate Record Examination (GRE) . The participants take a mc GRE test before the program begins and again at the end to measure their improvement.
The mean number of points improved was $\bar { x } = 20$ . Assume the standard deviation is $\sigma = 64$ and let $\mu$ be the population mean number of points improved. To determine whether the program is effective, a test is made of the hypotheses $H _ { 0 } : \mu = 0$ versus $H _ { 1 } : \mu > 0$ .
Do you reject $H _ { 0 }$ at the $\alpha = 0.01$ level? ive

• A) There is not enough information to draw a conclusion.
• B) No
• C) Yes

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Definitions:

Public Good

A product or service that is non-excludable and non-rivalrous, meaning it can be used by anyone without diminishing its availability to others.

Allocative Efficiency

The apportionment of resources among firms and industries to obtain the production of the products most wanted by society (consumers); the output of each product at which its marginal cost and marginal benefit are equal, and at which the sum of consumer surplus and producer surplus is maximized.

Marginal Costs

The additional cost incurred by producing one more unit of a good or service, crucial for making production and pricing decisions.

Marginal Benefits

The incremental satisfaction or benefit a consumer derives from consuming an additional unit of a good or service.