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

question 134

Short Answer

TABLE 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.
-Referring to Table 9-9, what critical value should the president use to determine the rejection region?

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Definitions:

Net Operating Income

The profit a company makes from its core operations, excluding expenses and revenues from non-operating activities.

Payback Period

The length of time required to recover the original investment in a project or asset, based on its expected cash flows.

Required Rate

The minimum return that investors expect or the company specifies for an investment, project, or loan.

Investment Equipment

Assets purchased for long-term use in the production of goods or services, typically including machinery and other manufacturing tools.