SCENARIO 10-10
a Corporation Randomly Selects 150 Salespeople and Finds $\pi$

question 47

Multiple Choice

SCENARIO 10-10
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 $\pi$ ₁ and $\pi$ ₂ 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 Scenario 10-10,if the firm wanted to test whether this proportion has changed from the previous study,which represents the relevant hypotheses?

• A)H₀: \(\pi\)₁ - \(\pi\) ₂ = 0 versus H₁: \(\pi\)₁ - \(\pi\) ₂ \(\neq\) 0
• B)H₀: \(\pi\)₁ - \(\pi\)₂ \(\neq\) 0 versus H₁: \(\pi\)₁ - \(\pi\)₂ = 0
• C)H₀: \(\pi\)₁ - \(\pi\) ₂ \(\le\) 0 versus H₁: \(\pi\)₁ - \(\pi\) ₂ > 0
• D)H₀: \(\pi\)₁ - \(\pi\) ₂ \(\ge\) 0 versus H₁: \(\pi\)₁ - \(\pi\) ₂ < 0

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Definitions:

Salvage Value

The estimated residual value of an asset at the end of its useful life, important for calculating depreciation.

Discount Rate

The interest rate used in discounted cash flow analysis to determine the present value of future cash flows or to evaluate the attractiveness of an investment.

Incremental Cost Approach

A decision-making process that focuses on the changes in total cost resulting from a specific business decision, considering only the relevant costs and benefits that differ between alternatives.

Operating Costs

Expenses associated with running a business's core activities on a day-to-day basis, such as salaries, rent, and utilities.