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Instruction 19-1
the Director of Transportation of a Large Company

question 32

True/False

Instruction 19-1
The director of transportation of a large company is interested in the usage of her van pool. She considers her routes to be divided into local and non-local. She is particularly interested in learning if there is a difference in the proportion of males and females who use the local routes. She takes a sample of a day's riders and finds the following:
 Male  Female  Total  Local 274471 Non-Local 33255 Total 6069129\begin{array} { | l | c | c | l | } \hline & \text { Male } & \text { Female } & \text { Total } \\\hline \text { Local } & 27 & 44 & 71 \\\hline \text { Non-Local } & 33 & 25 & 5 \\\hline \text { Total } & 60 & 69 & 129 \\\hline\end{array} She will use this information to perform a chi-square hypothesis test using a level of significance of 0.05.
-Referring to Instruction 19-1,the director now wants to know if the proportion of users who are male and the proportion of users who use the local routes are the same.She should reject the null hypothesis using a 5% level of significance.

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Definitions:

Diseconomies Of Scope

The phenomenon where the cost of producing two or more products together is higher than producing them separately.

Economies Of Scope

cost advantages that enterprises obtain due to the efficient allocation and utilization of resources across multiple products or services.

Diseconomies Of Scope

A situation in which a company experiences increased costs as a result of increasing the variety of goods or services it produces.

Economies Of Scope

Cost advantages that enterprises obtain due to the efficient production of a wider variety of goods or services together rather than separately.

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