SCENARIO 10-11 The Dean of a College Is Interested in the Proportion

question 208

True/False

SCENARIO 10-11
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 10-11,the same decision would be made with this test if the level of significance had been 0.10 rather than 0.05.

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Definitions:

Indirect Method

A cash flow statement reporting approach that adjusts net income for changes in balance sheet accounts to calculate cash from operating activities.

Operating Activities

Activities related to the day-to-day functions of a business that involve generating revenue, paying expenses, and the net cash flow from these operations.

Depreciation

The process of allocating the cost of a tangible asset over its useful life, reflecting the loss of value over time.

Amortization

The process of spreading out a loan into a series of fixed payments over time, or the gradual reduction of the book value of an intangible asset over its useful life.