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:

Return on Assets

A profitability ratio that measures how efficiently a company is using its assets to generate profit, calculated by dividing net income by total assets.

Shareholder Wealth

The total value of an investment in a company's stock, encompassing capital gains and dividends received over time.

Cash Flows

The comprehensive total of cash and similar to cash assets transferred into and from a business.

Payback Period

The duration needed to recoup the funds spent on an investment.