A Four-Year University Has Decided to Implement a New Approach

question 40

Multiple Choice

A four-year university has decided to implement a new approach to teaching statistics. Full-time and
adjunct professors were surveyed to determine whether they preferred the traditional lecture approach or
a computer approach for teaching statistics. Use hypothesis testing to test the independence of opinion
between the two groups.
$$\begin{array}{l}\text { Table 11-3 }\\\begin{array} { l l l l } & \text { Prefer Lecture } & \text { Prefer Computer } & \text { No Preference } \\\text { Full-time } & 8 & 13 & 6 \\\text { Adjunct } & 11 & 22 & 10\end{array}\end{array}$$
-What is the expected value of a full-time professor who has no preference?

• A) 13.50
• B) 9.83
• C) 6.17
• D) 7.33

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Definitions:

Market Capitalization Rate

The expected return on an investment in the market, derived from the collective appraisal of all investors' expectations of future market performance.

Present Value of Growth Opportunities

A valuation method that estimates the current worth of a company's future investment opportunities, considering the time value of money.

ROE

Return on Equity, a measure of a corporation's profitability that reveals how much profit a company generates with the money shareholders have invested.

Expected Earnings

The forecasted income of a company, often used by investors to gauge the company's future profitability.