TABLE 10-5 To Test the Effectiveness of a Business School Preparation Course

question 26

Multiple Choice

TABLE 10-5
To test the effectiveness of a business school preparation course, 8 students took a general business test before and after the course. The results are given below.
Exam Score Exam Score
Student Before Course (1) After Course (2)
1 530 670
2 690 770
3 910 1,000
4 700 710
5 450 550
6 820 870
7 820 770
8 630 610
-Referring to Table 10-5, what is the critical value for testing at the 5% level of significance whether the business school preparation course is effective in improving exam scores?

• A) 2.365
• B) 2.145
• C) 1.761
• D) 1.895

---

Definitions:

Collection Process

The method by which a company pursues payment on outstanding invoices from customers, including sending reminders, making calls, or taking legal action.

Credit Standards

The set of criteria that lenders use to determine the creditworthiness of borrowers and the terms under which credit will be extended.

Credit Policy

The guidelines a company follows in determining credit terms for its customers, including terms of payment and credit limits.

Collection Policy

A set of procedures a company uses to manage the collection of amounts due from its customers.