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

question 185

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,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 correct?

• A)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.
• 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 increased 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.

---

Definitions:

External Costs

Costs of economic activity not borne by the producer or consumer but by society, often not reflected in the price of goods or services.

Economic Efficiency

A situation where resources are allocated in a way that maximizes the production of goods and services at the lowest cost.

Market

A place or arrangement through which goods and services are exchanged between buyers and sellers.

Public Good

A commodity or service that is provided without profit to all members of a society, either by the government or by a private individual or organization.