SCENARIO 12-2
the Dean of a College Is Interested in the Proportion

question 67

Multiple Choice

SCENARIO 12-2
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 Scenario 12-2, the hypotheses the dean should use are:

• A)\(H _ { 0 } : \pi _ { 1 } - \pi _ { 2 } = 0 \text { versus } H _ { 1 } : \pi _ { 1 } - \pi _ { 2 } \neq 0\)
• B)\(H _ { 0 } : \pi _ { 1 } - \pi _ { 2 } \neq 0 \text { versus } H _ { 1 } : \pi _ { 1 } - \pi _ { 2 } = 0\)
• C)\(H _ { 0 } : \pi _ { 1 } - \pi _ { 2 } \leq 0 \text { versus } H _ { 1 } : \pi _ { 1 } - \pi _ { 2 } > 0\)
• D)\(H _ { 0 } : \pi _ { 1 } - \pi _ { 2 } \geq 0 \text { versus } H _ { 1 } : \pi _ { 1 } - \pi _ { 2 } < 0\)

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Definitions:

Equilibrium Price

The price at which the quantity of goods supplied matches the quantity of goods demanded, leading to market stability.

Oligopoly

A market structure characterized by a small number of firms whose decisions affect and are affected by each other, leading to strategic behavior.

Automobile Manufacturing

The industry and process involved in the design, development, production, marketing, and sale of motor vehicles.

Cotton Farming

The agricultural practice of cultivating the cotton plant for its fibers, which are harvested and processed into textile products.