Instruction 15-9
the Director of Admissions at a Local University

question 110

True/False

Instruction 15-9
The director of admissions at a local university is interested in investigating if admissions status (admitted,waiting list,denied admission)is independent of the type of community in which an applicant resides.He takes a sample of recent admissions decisions and forms the following table:
$$\begin{array} { | l | c | c | c | c | } \hline & \text { Admitted } & \text { Wait List } & \text { Denied } & \text { Total } \\\hline \text { Urban } & 45 & 21 & 17 & 83 \\\hline \text { Rural } & 33 & 13 & 24 & 70 \\\hline \text { Suburban } & 34 & 12 & 39 & 85 \\\hline \text { Total } & 112 & 46 & 80 & 238 \\\hline\end{array}$$ He will use this table to run a chi-square test of independence with a level of significance of 0.01.
-Referring to Instruction 15-9,the null hypothesis will be rejected.

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Definitions:

Net Profit/Pretax Profit Ratio

A financial metric that compares the net profitability of a business to its earnings before taxes, indicating the portion of income retained after accounting for all expenses.

Leverage Ratio

A financial ratio that measures the amount of debt used in a company's financing structure relative to its equity or other assets.

Pretax Profit/EBIT

Earnings before interest and taxes, a measure of a company's profitability that excludes interest and income tax expenses.

Asset Turnover Ratio

A financial metric that measures the efficiency of a company's use of its assets in generating sales revenue.