TABLE 11-1 A Corporation Randomly Selects 150 Salespeople and Finds That 66

question 4

Multiple Choice

TABLE 11-1
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 11-1, what is the critical value when performing a chi-square test on whether the population proportions are different if α = 0.05?

• A) ±1.645
• B) ±1.96
• C) 3.841
• D) 2.706

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Definitions:

Cost Method

An accounting method that values inventory and cost of goods sold based on the purchase cost of the materials.

Common Stock

A type of equity security that represents ownership in a corporation, entitling holders to vote on corporate matters and receive dividends.

Long-term Investment

Investments held by an entity for an extended period, typically more than one year, such as bonds, stocks, or real estate.

Equity Method

A method where an investor recognizes its share of the profits and losses of the investee company it has invested in, proportionate to its ownership percentage.