TABLE 10-12 The Dean of a College Is Interested in the Proportion

question 138

Multiple Choice

TABLE 10-12
The dean of a college is interested in the proportion of graduates from his college who have a job offer on graduation day. He is particularly interested in seeing if there is a difference in this proportion for accounting and economics majors. In a random sample of 100 of each type of major at graduation, he found that 65 accounting majors and 52 economics majors had job offers. If the accounting majors are designated as "Group 1" and the economics majors are designated as "Group 2," perform the appropriate hypothesis test using a level of significance of 0.05.
-Referring to Table 10-12, the hypotheses the dean should use are:

• A) H₀ : π₁ - π₂ = 0 versus H₁: π₁ - π₂ ≠ 0
• B) H₀ : π₁ - π₂ ≠ 0 versus H₁: π₁ - π₂ = 0
• C) H₀ : π₁ - π₂ ≤ 0 versus H₁: π₁ - π₂ > 0
• D) H₀ : π₁ - π₂ ≥ 0 versus H₁: π₁ - π₂ < 0

---

Definitions:

Usage Tax

Usage tax is a levy on the use of goods or services, typically calculated as a percentage of the purchasing price or a flat rate, aimed at specific products or activities.

Difference-In-Differences

is an econometric technique used to estimate the effect of a specific intervention or treatment by comparing the changes in outcomes over time between a treatment group and a control group.

Usage Tax

A tax imposed on the use of goods or services, typically applied to regulate or discourage certain behaviors.

Average Number

A statistical measure representing the sum of values divided by the count of those values.