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

question 63

True/False

SCENARIO 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.
-True or False: Referring to Scenario 9-9, the president can conclude that the mean SAT score of
the entering class this year is lower than previous years using a level of significance of 0.10.

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Definitions:

CFA Institute Standards

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Securities Exchange Act

A U.S. federal law enacted in 1934 that regulates the securities industry, including the secondary trading of securities, to protect investors against malpractices.

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