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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.
Par Preferred Stock
A type of preferred stock that has a specified face value (par value) which determines the dividend calculation and has priority over common stock in dividend payments and upon liquidation.
Par Common Stock
The nominal or face value assigned to a share of common stock, as declared in the corporate charter, which has little bearing on the market value of the share.
Market Value
The present cost at which a service or asset is available for purchase or sale in the market.
Share-based Compensation
A form of remuneration where employees receive shares of the company's stock as part of their compensation package.
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