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 \( H_{1}: \pi_{1}-\pi_{2} \neq 0 \)

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Definitions:

Cost Center

A responsibility center that incurs costs but does not directly generate revenues.

Generates Revenues

Generates revenues refers to the activities or strategies a company employs to earn income from its business operations.

Profitability

A measure of the efficiency and financial success of a company, usually determined by the ratio of its profits to its revenues.

Controllable Costs

Expenses that can be managed or influenced by decisions made by a company's management.