Instruction 10-4
to Test the Effectiveness of a Business School

question 151

Multiple Choice

Instruction 10-4
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.
$$\begin{array} { c c c } \text { Student } & \begin{array} { c } \text { Exam Score } \\\text { Before Course }\end{array} & \begin{array} { c } \text { Exam Score } \\\text { After Course (2) }\end{array} \\& ( 1 ) & \\ 1 & 530 & 670 \\ 2 & 650 & 770 \\3 & 910 & 1,000 \\4 & 700 & 710 \\5 & 450 & 550 \\6 & 820 & 870 \\7 & 820 & 770 \\8 & 630 & 610\end{array}$$
-Referring to Instruction 10-4,at the 0.05 level of significance,the decision for this hypothesis test would be

• A) reject the null hypothesis.
• B) reject the alternative hypothesis.
• C) do not reject the null hypothesis.
• D) It cannot be determined from the information given.

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Definitions:

Menu Costs

Menu costs refer to the expenses incurred by firms in changing prices in response to market changes, including the physical costs of changing price tags and the costs of updating marketing materials.

High Inflation

A condition where the general price level in an economy increases rapidly over a period, eroding purchasing power.

Velocity

Velocity in economics refers to the speed at which money circulates within the economy, indicating how frequently units of currency are used to purchase domestically produced goods and services.

Price Level

The present average price level across the economy's entire production of goods and services.