I We Use the Pooled Estimate of the Proportion in Testing

question 10

Multiple Choice

i. We use the pooled estimate of the proportion in testing the difference between two population proportions.
Ii) The pooled estimate of the proportion is found by dividing the total number of samples by the total number of successes.
Iii) A committee studying employer-employee relations proposed that each employee would rate his or her immediate supervisor and in turn the supervisor would rate each employee. To find reactions regarding the proposal, 120 office personnel and 160 plant personnel were selected at random. Seventy-eight of the office personnel and 90 of the plant personnel were in favour of the proposal. Computed z = 1.48. At the 0.05 level, it was concluded that there is sufficient evidence to support the belief that the proportion of office personnel in favour of the proposal is greater than that of the plant personnel.

• A) (i), (ii) and (iii) are all false statements
• B) (i) and (ii) are correct statements, but not (iii).
• C) (i) and (iii) are correct statements but not (ii).
• D) (ii) and (iii) are correct statements but not (i).
• E) (i) is a correct statement, but not (ii) and (iii).

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Definitions:

LIFO Reserve

The difference between the cost of inventory calculated using the Last In, First Out method and the First In, First Out method, reflecting the impact of inflation on inventory valuation.

Balance Sheet

A summary document detailing a firm's assets, liabilities, and equity held by shareholders at a certain moment.

Cumulative Effect

The total impact of one or more changes in accounting policies or corrections of errors made in previous years, reflected in the current year's financial statements.

Just-In-Time Inventory

A strategy that companies use to increase efficiency and decrease waste by receiving goods only as they are needed in the production process, thereby reducing inventory costs.