Suppose a Survey Is Taken of Two Groups of People

question 96

Multiple Choice

Suppose a survey is taken of two groups of people where each person is asked a yes/no question and the proportion of people who answer yes is calculated for each group. Which of the following is true about a hypothesis test of the difference in the two proportions?

• A) Normality can be assumed if the sample size for each population is at least 30.
• B) The t-distribution should be used if the standard deviations are unknown.
• C) The standard deviation must be assumed equal.
• D) Normality can be assumed if, in each group, at least 5 people say yes, and at 5 people say no.

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Definitions:

Fixed Costs

Costs that do not change with the level of goods or services produced within a certain range; such costs are incurred regardless of business activity levels.

Break-even Point

The point at which total income matches total costs, leading to a situation where there is no gain or deficit.

Variable Cost

Costs that vary directly with the level of production or the volume of services rendered, such as raw materials and direct labor.

Fixed Costs

Costs that remain constant regardless of the amount of products or services a company generates, including expenses like lease payments, wages, and premiums.