Exhibit 10-3 A Statistics Teacher Wants to See If There Is Any

question 36

Multiple Choice

Exhibit 10-3
A statistics teacher wants to see if there is any difference in the abilities of students enrolled in statistics today and those enrolled five years ago. A sample of final examination scores from students enrolled today and from students enrolled five years ago was taken. You are given the following information.
-Refer to Exhibit 10-3. What is the conclusion that can be reached about the difference in the average final examination scores between the two classes? (Use a .05 level of significance.)

• A)There is a statistically significant difference in the average final examination scores between the two classes.
• B)There is no statistically significant difference in the average final examination scores between the two classes.
• C)It is impossible to make a decision on the basis of the information given.
• D)There is a difference, but it is not significant.

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Definitions:

Accrual Accounting

An accounting method where revenue and expenses are recorded when they are earned or incurred, regardless of when cash transactions occur.

Subjective Judgments

Assessments based on personal opinions, interpretations, points of view, emotions, and judgment calls rather than on objective observations or measurements.

Measurement Errors

Discrepancies between measured values and the true values, which can occur in financial reporting and affect the accuracy of financial statements.

Indirect Method

A cash flow statement approach that adjusts net income for changes in non-cash working capital and non-operating adjustments to calculate cash flow from operations.