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SCENARIO 12-11
The director of admissions at a state college is interested in seeing if admissions status (admitted,
waiting list, denied admission)at his college is independent of the type of community in which an
applicant resides.He takes a sample of recent admissions decisions and forms the following table: He will use this table to do a chi-square test of independence with a level of significance of 0.01.
-True or False: Referring to Scenario 12-11, the same decision would be made with this test if
the level of significance had been 0.05.
Predictable
Capable of being foreseen or declared in advance with a high degree of certainty.
Correlated
When two variables have a mutual relationship that affects each other's movements or values.
Cash Flow
The total amount of money being transferred into and out of a business, measuring financial health.
Probability
A measure of the likelihood that an event will occur, often expressed as a number between 0 and 1.
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