Use the Traditional Method to Test the Given Hypothesis

question 14

Essay

Use the traditional method to test the given hypothesis. Assume that the samples are independent and that they have been randomly selected
- $$\begin{array}{l}\text { Use the given sample data to test the claim that } \mathrm { p } _ { 1 } > \mathrm { p } _ { 2 } \text {. Use a significance level of } 0.01 \text {. }\\\begin{array} { l l l } \text { Sample 1 } & \text { Sample 2 } \\\hline \mathrm { n } _ { 1 } = 85 & \mathrm { n } _ { 2 } = 90 \\\mathrm { x } _ { 1 } = 38 & \mathrm { x } _ { 2 } = 23\end{array}\end{array}$$

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Definitions:

Variable Expenses

Variable expenses fluctuate with business activity levels, such as materials and labor costs, which increase as production increases.

Fixed Expenses

Costs that do not vary with changes in production volume or sales, such as rent, salaries, and insurance.

Profit

The financial gain realized when the revenue generated from a business activity exceeds the costs, expenses, and taxes needed to sustain the activity.

Contribution Margin Ratio

A financial metric that shows the percentage of sales revenue that remains after variable costs are subtracted.