A Tutor Promises to Improve GMAT Scores of Students by More

question 17

Multiple Choice

A tutor promises to improve GMAT scores of students by more than 50 points after three lessons. To see if this is true, the tutor takes a sample of 49 students' test scores after and before they received tutoring. The mean difference was 53 points better after tutoring, with a standard deviation of the difference equal to 12 points. Let µ_D denote the mean of the difference: score after tutoring minus score before tutoring. Which of the following is the appropriate conclusion at the 5% significance level?

• A) Reject H₀; we can conclude that the mean difference in test scores after and before tutoring is greater than 50 points.
• B) Reject H₀; we cannot conclude that the mean difference in test scores after and before tutoring is greater than 50 points.
• C) Fail to reject H₀, we can conclude that the mean difference in test scores after and before tutoring is greater than 50 points.
• D) Fail to reject H₀; we cannot conclude that the mean difference in test scores after and before tutoring is greater than 50 points.

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Definitions:

Outstanding Balance

The amount of money owed on a loan or credit account that has not yet been repaid.

Invoice

A document indicating a transaction between a buyer and a seller, listing the goods or services provided along with their prices and the total amount due.

EOM

EOM stands for "End of Month," a term used in various contexts, notably in business and finance, to indicate something that occurs or is due at the conclusion of the calendar month.

Invoices

Documents issued by a seller to a buyer, specifying the products or services provided and requesting payment at the agreed price.