Instruction 19-5
the Director of the MBA Program of a University

question 44

True/False

Instruction 19-5
The director of the MBA program of a university wanted to know if a one week orientation would change the proportion among potential incoming students who would perceive the program as being good. Given below is the result from 215 students' view of the program before and after the orientation.
After the Orientation
$$\begin{array} { | c | c | c | c | } \hline \text { Before the Orientation } & \text { Good } & \text { Not Good } & \text { Total } \\\hline \text { Good } & 93 & 37 & 130 \\\hline \text { Not Good } & 71 & 14 & 85 \\\hline \text { Total } & 164 & 51 & 215 \\\hline\end{array}$$
-Referring to Instruction 19-5,the decision made at a 0.01 level of significance on the Friedman rank test for the difference in medians implies that all three medians are significantly different.

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Definitions:

Future Cash Flows

Estimates of the amount of money expected to be received or paid out by a business in future periods.

Internal Rate of Return

A metric used in financial analysis to estimate the profitability of potential investments, calculated as the rate of return that makes the net present value of all cash flows equal to zero.

Present Value

The current valuation of a future sum of money or cash flows, when evaluated at a given rate of return.

Desired Rate of Return

The return a investor expects to achieve from an investment.