A Company That Sells an Online Course Aimed at Helping

question 92

Multiple Choice

A company that sells an online course aimed at helping high-school students improve their SAT scores has claimed that SAT scores will improve by more than 90 points on average if students successfully complete the course. To test this, a national school counseling organization plans to select a random sample of n = 100 students who have previously taken the SAT test. These students will take the company's course and then retake the SAT test. Assuming that the population standard deviation for improvement in test scores is thought to be 30 points and the level of significance for the hypothesis test is 0.05, what is the probability that the counseling organization will incorrectly "accept" the null hypothesis when, in fact, the true mean increase is actually 95 points?

• A) Approximately 0.508
• B) About 0.492
• C) Approximately 0.008
• D) Can't be determined without knowing the sample results.

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Definitions:

Cyclical Items

Goods or services whose demand fluctuates in a predictable pattern over time due to seasonal, economic, or other cyclic factors.

ABC Analysis

A methodology for classifying inventory items based on their importance, where A items are most valuable, followed by B and then C, to prioritize inventory management efforts.

Annual Units

The quantity of items produced or sold by a company in one year.

Quantities Used

The amounts of materials or resources consumed during the production of goods or services.