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

question 17

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 same decision would be made with this test if the level of significance had been 0.05.

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Definitions:

Income Statement Account

An account found on the income statement that records business transactions affecting the company's revenue, expenses, gains, and losses.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle of the business, whichever is longer.

Balance Sheet

A financial statement that displays a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a basis for computing rates of return and evaluating its capital structure.

Assets

Economic resources owned or controlled by a business or an individual, expected to provide future benefits.