Exhibit 9-3

question 16

Multiple Choice

Exhibit 9-3.The Boston public school district has had difficulty maintaining on-time bus service for its students ("A Year Later,School Buses Still Late," Boston Globe,October 5,2011) .Suppose the district develops a new bus schedule to help combat chronic lateness on a particularly woeful route.Historically,the bus service on the route has been,on average,12 minutes late.After the schedule adjustment,the first 36 runs were an average of 8 minutes late.As a result,the Boston public school district claimed that the schedule adjustment was an improvement-students were not as late.Assume a population standard deviation for bus arrival time of 12 minutes. Refer to Exhibit 9-3.At the 1% significance level,does the evidence support the Boston Public Schools' claim?

• A)No,since the p-value is greater than α.
• B)Yes,since the p-value is greater than α.
• C)No,since the value of the test statistic is less than the critical value.
• D)Yes,since the value of the test statistic is less than the critical value.

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Definitions:

Bond Prices

are the market value of bonds, which inversely correlate with interest rates; when rates go up, bond prices typically go down, and vice versa.

Interest Rates

The proportion of a total amount of money that is levied for its utilization, typically stated on a yearly basis.

Money Supply

The absolute total of money-related assets within an economy at a particular time.

Depository Institutions

Financial institutions that accept deposits from the public and offer lending and other financial services.