In a Study on Scholastic Test Scores of Entering College

question 70

Multiple Choice

In a study on scholastic test scores of entering college freshmen,a random sample of colleges across the nation is selected and the average SAT Math score for the freshman class is recorded.The colleges are categorized according to their affiliation: public,private,or church.Does it appear that freshmen entering the three different types of schools do equally well on the SAT Math? Computer output is included below. Under the null hypothesis of equality of population means,what is the distribution of the test statistic?

• A)F(2,63)
• B)F(2,65)
• C)N(0,3)
• D)t(63)

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Definitions:

S&P 500 Index

A stock market index that measures the stock performance of 500 large companies listed on stock exchanges in the United States, often used as a gauge of the overall health of the US stock market.

Sharpe Measure

A metric used to assess the risk-adjusted return of an investment, comparing its excess returns to the volatility experienced.

Residual Standard Deviation

A statistical measure of the amount of variance in investment returns not explained by the beta in the Capital Asset Pricing Model (CAPM).

Geometric Average Return

Is the average rate of return of a set of values calculated using the products of the terms.