TABLE 12-1 A Corporation Randomly Selects 150 Salespeople and Finds That 66

question 46

Multiple Choice

TABLE 12-1
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 12-1, 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:

Bonds

Fixed income investment products that represent a loan made by an investor to a borrower, typically corporate or governmental, which pays periodic interest payments and the return of the principal at maturity.

Jensen's Measure

A performance evaluation metric that measures the excess return of an investment portfolio over the predicted return, adjusted for market risk.

Residual Standard Deviation

A measure of the amount of variability in a set of residuals not explained by the predictive variables in a regression model.

Beta

A measure of a stock's volatility in relation to the overall market, indicating its risk relative to the market average.