TABLE 10-10 A Corporation Randomly Selects 150 Salespeople and Finds That 66

question 171

Multiple Choice

TABLE 10-10
A corporation randomly selects 150 salespeople and finds that 66% who have never taken a self-improvement course would like such a course. The firm did a similar study 10 years ago in which 60% of a random sample of 160 salespeople wanted a self-improvement course. The groups are assumed to be independent random samples. Let π₁ and π₂ represent the true proportion of workers who would like to attend a self-improvement course in the recent study and the past study, respectively.
-Referring to Table 10-10, what is the estimated standard error of the difference between the two sample proportions?

• A) 0.629
• B) 0.500
• C) 0.055
• D) 0

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Definitions:

Working Capital Strategy

A business approach focusing on managing a company's operational needs efficiently by balancing current assets and current liabilities to maintain liquidity.

Long-term External Financing

Funding obtained from sources outside the company, typically through issuing equity or long-term debt, intended for periods longer than one year.

Aggressive

An assertive stance or policy in business or investment, typically involving higher risks for the possibility of higher returns.

Financial Planning Process

A comprehensive evaluation of an individual's or organization's current and future financial state by using currently known variables to predict future cash flows and asset values.