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

question 78

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,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 most 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:

Social Responsibility Pyramid

A framework suggesting that businesses are responsible to their stakeholders in a hierarchical manner, starting from economic, legal, ethical, to philanthropic responsibilities.

Milton Friedman

was an American economist known for his strong belief in free-market capitalism and for being a leading proponent of monetarism.

Economic Responsibility

Refers to the duty of organizations to make decisions that benefit the financial health of both the company and the wider economy.

Strategy

A plan of action designed to achieve a long-term or overall aim, often involving positioning a business for competitive advantage.