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

question 206

Short Answer

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 10-12, the hypotheses the dean should use are: a) $H _ { 0 } : \pi _ { 1 } - \pi _ { 2 } = 0$ versus $H _ { 1 } : \pi _ { 1 } - \pi _ { 2 } \neq 0$
b) $H _ { 0 } : \pi _ { 1 } - \pi _ { 2 } \neq 0$ versus $H _ { 1 } : \pi _ { 1 } - \pi _ { 2 } = 0$
c) $H _ { 0 } : \pi _ { 1 } - \pi _ { 2 } \leq 0$ versus $H _ { 1 } : \pi _ { 1 } - \pi _ { 2 } > 0$
d) $H _ { 0 } : \pi _ { 1 } - \pi _ { 2 } \geq 0$ versus $H _ { 1 } : \pi _ { 1 } - \pi _ { 2 } < 0$

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Definitions:

Labor Force

Comprises all the working-age people in an economy who are employed or are actively seeking employment.

Explicit Cost

Direct payment made to others in the process of running a business, such as wages, rent, and materials.

Future Earnings

The projected income a person or entity will receive from work or investments in the future.

Migration

The movement of people from one place to another, often across political boundaries, for the purpose of settling temporarily or permanently.