SCENARIO 12-2 The Dean of a College Is Interested in the Proportion

question 63

True/False

SCENARIO 12-2
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.
-True or False: Referring to Scenario 12-2, 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:

Profit

The financial gain made in a transaction, calculated as the difference between the revenue received and the costs incurred.

Average Total Cost

The total cost of production (fixed plus variable costs) divided by the total quantity produced.

Output

Represents the total amount of goods and services produced by an economy over a specific period.

Average Variable Cost

The total variable costs (costs that change with the amount of output produced) divided by the quantity of output produced.