The National Club Association Does Periodic Studies on Issues Important

question 105

Multiple Choice

The National Club Association does periodic studies on issues important to its membership.The 2012 Executive Summary of the Club Managers Association of America reported that the average country club initiation fee was $31,912.Suppose a random sample taken in 2009 of 12 country clubs produced the following initiation fees: Based on the sample information,can you conclude at the α = 0.05 level of significance that the average 2009 country club initiation fees are lower than the 2008 average? Conduct your test at the level of significance.

• A)Because t = -0.4324 is not less than t critical = -1.4512,do not reject Ho.The 2009 average country club initiation fee is not less than the 2008 average.
• B)Because t = -0.4324 is not less than t critical = -1.4512,reject Ho.The 2009 average country club initiation fee is less than the 2008 average.
• C)Because t = -0.5394 is not less than t critical = -1.7959,do not reject Ho.The 2009 average country club initiation fee is not less than the 2008 average.
• D)Because t = -0.5394 is not less than t critical = -1.7959,reject Ho.The 2009 average country club initiation fee is less than the 2008 average.

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Definitions:

Significance Level

A threshold set by the researcher to determine the maximum probability of wrongly rejecting the null hypothesis, commonly denoted as alpha (α) and often set at 0.05 or 5%.

Linearly Related

A relationship between two variables in which the change in one variable is directly proportional to the change in another.

Years of Experience

A measurement of the amount of time an individual has spent in a particular role or industry.

Nominal Variable

A variable that represents categories with labels or names but which does not have an inherent order.