TABLE 12-5 a Corporation Randomly Selects 150 Salespeople and Finds That

question 55

Multiple Choice

TABLE 12-5
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 u₁ and u₂ 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 12-5, the company tests to determine at the 0.05 level whether the population proportion has changed from the previous study. Which of the following is most correct?

• A) Reject the null hypothesis and conclude that the proportion of employees who are interested in a self-improvement course has increased over the intervening 10 years.
• B) Do not reject the null hypothesis and conclude that the proportion of employees who are interested in a self-improvement course has not changed over the intervening 10 years.
• C) Reject the null hypothesis and conclude that the proportion of employees who are interested in a self-improvement course has changed over the intervening 10 years.
• D) Do not reject the null hypothesis and conclude that the proportion of employees who are interested in a self-improvement course has increased over the intervening 10 years.

Understand the influence of market forces and competition on pricing decisions.

Understand the factors influencing product mix decisions and their impact on management strategy.

Comprehend the dynamics of total revenue and its relationship with quantity sold.

Recognize the legal and economic implications of predatory pricing.

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Definitions:

Discontinued Operation

A component of a company's business that has been sold or discontinued, with its results reported separately in the financial statements.

Comprehensive Income

The change in equity of a company during a period from transactions and other events from non-owner sources. It includes all revenues, gains, expenses, and losses.

Numerators

Numerators, in finance and accounting, typically refer to the top numbers in fractions or ratios, often used in calculations to assess financial performance measures, such as earnings per share.

Weighted Average

A computation that considers the different levels of significance of the figures in a dataset.