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

question 27

Multiple Choice

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, which of the following best describes the Type II error?

• A) The president concludes that the mean SAT score of the entering students is lower than previous years when it is indeed not lower.
• B) The president concludes that the mean SAT score of the entering students is higher than previous years when it is indeed not higher.
• C) The president concludes that the mean SAT score of the entering students is not lower than previous years when it is indeed lower.
• D) The president concludes that the mean SAT score of the entering students is not higher than previous years when it is indeed higher.

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Definitions:

Limited Liability

A legal structure that limits the personal liability of the owners and shareholders of a company for the company's debts and actions.

Share Transferability

The ease with which shares of a company can be transferred or sold from one party to another.

Partnership

A legally recognized form of business where more than one individual partakes in managing and profit-sharing.

Ownership Rights

Legal rights that confer the ability to use, manage, and enjoy the benefits of an asset or property.