6.90 Is it significant? More than 200,000 people worldwide take the GMAT examination each year when they apply for MBA programs. Their scores vary Normally with mean μ = 540 and standard deviation σ = 100. One hundred students go through a rigorous training program designed to raise their GMAT scores. Test the following hypotheses about the training program
H0: μ = 540
Ha: μ > 540
in each of the following situations.
(a) The students’ average score is . Is this result significant at the 5% level?
(b) Now suppose that the average score is . Is this result significant at the 5% level?
(c) Explain how you would reconcile this difference in significance, especially if any increase greater than 15 points is considered a success.