TABLE 12-17
the Director of the MBA Program of a State

question 141

Multiple Choice

TABLE 12-17
The director of the MBA program of a state university wanted to know if a one week orientation would change the proportion among potential incoming students who would perceive the program as being good. Given below is the result from 215 students' view of the program before and after the orientation.
$$\begin{array}{l}\text {\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad After the Orientation }\\\begin{array} { l c c r } \text { Before the Orientation } & \text { Good } & \text { NotGood } & \text { Total } \\\hline\text { Good } & 93 & 37 & 130 \\\text { Not Good } & 71 & 14 & 85 \\\text { Total } & 164 & 51 & 215\end{array}\end{array}$$
-Referring to Table 12-17, what should be the director's conclusion?

• A) There is insufficient evidence that the proportion of potential incoming students who perceive the program as being good is not the same before and after the orientation.
• B) There is sufficient evidence that the proportion of potential incoming students who perceive the program as being good is not the same before and after the orientation.
• C) There is sufficient evidence that the proportion of potential incoming students who perceive the program as being good is the same before and after the orientation.
• D) There is insufficient evidence that the proportion of potential incoming students who perceive the program as being good is the same before and after the orientation.

Understand how to compute the expected return on a portfolio and the role of portfolio weights.

Recognize the importance of the correlation between stocks in a portfolio and its effect on portfolio variance.

Identify and differentiate between systematic (market) risk and unsystematic (unique) risk and their implications for investment decisions.

Realize the implications of the slope of the security market line on market perceptions of risk and return.

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Definitions:

Payment Terms

Conditions under which a seller will complete a sale, often detailing the time limit for payment and any discounts for early payment.

Amount Owing

The total sum of money that is due to be paid.

Operating Expense

An ongoing expense incurred in the operation of a business, such as rent, utilities, and salaries.

Operating Profit

Earnings before interest and taxes, calculated by subtracting operating expenses from gross profit.