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

question 40

True/False

TABLE 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.
-Referring to Table 12-11, the null hypothesis claims that "there is no association between admission status at the college and the type of community in which an applicant resides."

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Definitions:

Section 1245

A section of the tax code that involves recapturing depreciation on certain types of property as ordinary income upon sale.

Section 1231 Gain

A gain from the sale or exchange of property used in a business, subject to favorable tax treatment under Section 1231 of the U.S. tax code.

Depreciation

The process of allocating the cost of a tangible asset over its useful life, reflecting the decrease in value over time.

AGI

Adjusted Gross Income is a measure of income calculated from your gross income and used to determine how much of your income is taxable.