TABLE 12-6 The Dean of a College Is Interested in the Proportion

question 185

True/False

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, the same decision would be made with this test if the level of significance had been 0.01 rather than 0.05.

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Definitions:

Goodwill

An intangible asset representing the value of a company's brand name, reputation, and customer relationships, acquired during a business combination.

Issued Capital

The total value of the shares that have been issued by a company and are held by shareholders, representing the initial capital paid into the business.

Retained Earnings

This is the amount of net income left after a company has paid out dividends to its shareholders, typically reinvested in the business or held as a reserve.

Goodwill

An intangible asset that arises when a company acquires another company for a price higher than the fair market value of its net assets, representing future economic benefits.