SCENARIO 12-1
a Corporation Randomly Selects 150 Salespeople and Finds $\pi$

question 91

Multiple Choice

SCENARIO 12-1
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 12-1,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:

Market Structures

The organizational and other characteristics of a market, including the number and size of firms, extent of competition, and type of product differentiation, impacting the behaviour and profitability of businesses within the market.

Quantity Effect

The change in total revenue resulting from a unit change in quantity sold, while holding price constant.

Price Effect

Describes how changes in prices impact the quantity supplied and demanded in a market.

Downward-Sloping Demand

A market condition reflected in a demand curve where the quantity demanded of a good decreases as the price of that good increases, and vice versa.