TABLE 11-2 The Dean of a College Is Interested in the Proportion

question 60

Multiple Choice

TABLE 11-2
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 11-2 , 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:

Least-cost Production

A production method where the combination of resources used minimizes costs for a given output level, achieving productive efficiency.

Per Unit Costs

The average cost of production or delivery per individual unit, calculated by dividing total costs by the number of units produced or delivered.

Output Level

is the quantity of goods or services produced within a given period by a firm or economy.

Plant Size

Refers to the scale or capacity of a manufacturing facility or industrial plant, affecting its potential output levels and efficiency.