A Recent Study Measured the Proportion of Business School Faculty

question 97

Multiple Choice

A recent study measured the proportion of business school faculty who engage in outside consulting.Four samples, each composed of 100 randomly selected faculty members, were used to represent four types of institutions: large four-year state schools, small four-year state schools, large four-year private schools, and small four-year private schools.In the sample of 100 faculty from large state schools, 30 reported such consulting jobs (30%) , as compared to 24 (24%) in the sample of faculty from small state schools.In the large private school sample, the number was 42 (42%) , as compared to 32 (32%) in the sample of faculty from small private schools. You use the chi-square distribution to test the hypothesis that the proportion of faculty who engage in outside consulting is the same across all four institutional categories.What is the value of the chi-square test statistic?

• A)7.72
• B)5.41
• C)6.39
• D)9.26

---

Definitions:

Economies of Scope

Cost advantages that a business obtains through the diversification of its production by producing multiple products from joint inputs.

Economies of Scale

Businesses gain financial benefits from their size of operation, as the cost for each unit of output typically reduces with the expansion of scale.

Economies of Scope

Cost advantages that enterprises obtain due to the efficient management of diverse business activities that enable them to share resources and capabilities across different products or segments.

Product Transformation Curve

Another term for the "production possibility frontier," which shows the different quantities of two goods that can be produced with a given set of resources.