Let S(x) be the statement "x is a student in the class".
C(x) be "x has studied Calculus".
The domain consist of all the people.
The statement "Every student in the class has studied calculus" is expressed as
∀x(S(x) -> C(x)). (in the book K.H. Rosen)
Now for the case where S(x) is False and C(x) is true, the expression is still true (according to the truth table of "->") which states the statement: "All people who're not students of the class have studied calculus". How come this statement is equivalent to the above statement "Every student in the class has studied calculus"
You are misinterpreting the sentence: ∀x(S(x) -> C(x)). You can read it as "For every x, if x is a student, then x have studied calculus".
It doesn't make sense to ask if S(x) is False or not since x, being in the reach of the "for all" cuantifier, ranges over the Universal set (the set of people in this case).
To probe that the sentence ∀x(S(x) -> C(x)) is True you need to probe that the sentence
is True for every x, ie for each person in the set of people.
You should try to write down the statment "All people who're not students of the class have studied calculus", or an easier equivalnet "For all people, if they are not students, then they have studied calculus" and compare with the original.