TABLE 10-11 The Dean of a College Is Interested in the Proportion

question 80

Multiple Choice

TABLE 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 Table 10-11, the hypotheses the dean should use are

• 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:

Collateral

Assets pledged by a borrower to secure a loan or credit, which the lender can seize if the borrower defaults.

Defaults

Situations in which parties fail to fulfill their obligations under a contract or agreement.

Recording Mortgage

The process of registering a mortgage deed with the appropriate government office to make it a part of the public record, ensuring legal protection and establishing priority.

Mortgagee

The party who lends money and takes back a mortgage as security for the loan.