Instruction 15-2 The Dean of a College Is Interested in the Proportion

question 44

True/False

Instruction 15-2
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 Instruction 15-2,the same decision would be made with this test if the level of significance had been 0.10 rather than 0.05.

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Definitions:

Risky Assets

Assets that have a higher degree of uncertainty in their returns, often with the potential for higher gains but also higher losses.

Minimum-variance Portfolio

An investment portfolio designed to have the lowest possible risk (variance) for its expected return.

Global Minimum Variance Portfolio

An investment portfolio strategy that seeks to minimize volatility by allocating assets in a way that produces the lowest possible variance.

Standard Deviations

A statistical measure that quantifies the dispersion or variance of a set of data points from their average, widely used in the finance sector to gauge the volatility of investment returns.