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

question 28

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, what is the critical value when performing a chi-square test on whether the population proportions are different if $\alpha$ = 0.05?

• A)\(\pm\) 1.645
• B)\(\pm\) 1.96
• C)3.841
• D)2.706

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Definitions:

Profit-Maximizing Rule

A principle stating that profit maximization occurs when a firm's marginal cost equals its marginal revenue.

Perfectly Competitive

Describes a market structure where many firms sell identical products, there are no barriers to entry or exit, and all firms are price takers.

Excess Capacity

A situation where a firm is producing at a lower scale of output than it has been designed for, leading to inefficiencies.

Average Total Costs

The total costs of production divided by the number of units produced, representing the cost per unit.