TABLE 10-10 A Corporation Randomly Selects 150 Salespeople and Finds That 66

question 25

Multiple Choice

TABLE 10-10
A corporation randomly selects 150 salespeople and finds that 66% who have never taken a self-improvement course would like such a course. The firm did a similar study 10 years ago in which 60% of a random sample of 160 salespeople wanted a self-improvement course. The groups are assumed to be independent random samples. Let π₁ and π₂ represent the true proportion of workers who would like to attend a self-improvement course in the recent study and the past study, respectively.
-Referring to Table 10-11, if the firm wanted to test whether this proportion has changed from the previous study, which represents the relevant hypotheses?

• A) H₀: π₁ - π₂ = 0 versus H₁: π₁ - π₂ ≠ 0
• B) H₀: π₁ - π₂ ≠ 0 versus H₁: π₁ - π₂ = 0
• C) H₀: π₁ - π₂ ≤ 0 versus H₁: π₁ - π₂ > 0
• D) H₀: π₁ - π₂ ≥ 0 versus H₁: π₁ - π₂ < 0

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Definitions:

Annual Rate of Return

The percentage of profit or loss on an investment over a one-year period.

How Much Decision

A consumer's determination of the quantity of a good or service to purchase, balancing the marginal utility and the price.

Total Revenues

The total amount of money generated by a firm from its sales activities before any costs or expenses are subtracted.

Total Costs

An alternate formulation for the sum of all expenses incurred in the production of goods or services, reflecting both fixed and variable components.