TABLE 12-6
the Dean of a College Is Interested $H_{0}: \pi_{1}-\pi_{2} \neq 0$

question 139

Multiple Choice

TABLE 12-6
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 12-6, which hypotheses should the dean use?

• A) \( H_{0}: \pi_{1}-\pi_{2} \neq 0 \) versus \( H_{1}: \pi_{1}-\pi_{2}=0 \)
• B) \( H_{0}: \pi_{1}-\pi_{2} \leq 0 \) versus \( H_{1}: \pi_{1}-\pi_{2}>0 \)
• C) \( H_{0}: \pi_{1}-\pi_{2} \geq 0 \) versus \( H_{1}: \pi_{1}-\pi_{2}<0 \)
• D) \( H_{0}: \pi_{1}-\pi_{2}=0 \) versus \( H_{1}: \pi_{1}-\pi_{2} \neq 0 \)

Understand tit-for-tat strategies and their implications for market behavior.

Identify the role of antitrust laws in preventing monopolies and maintaining competition.

Assess the consequences of advertising decisions in oligopolistic markets.

Understand the factors leading to price wars and their impact on market dynamics.

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Definitions:

General & Administrative Expenses

Operating expenses that are not directly tied to the production of goods or services, including salaries of non-sales personnel, rent, and office supplies.

WIP Inventory

Work-in-process inventory, which represents the costs of unfinished goods in manufacturing processes.

Finished Goods Inventory

The stock of completed products ready for sale, reflecting the end-stage of the production process.

Value Chain

The major business functions that add value to a company’s products and services such as research and development, product design, manufacturing, marketing, distribution, and customer service.