TABLE 10-11
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 10-11, the hypotheses the dean should use are

Question

TABLE 10-11
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 10-11, 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.

Quizplus · Accepted Answer

The appropriate hypothesis test for comparing the proportion of graduates with a job offer for accounting and economics majors is a two-sample proportion test. The null hypothesis H₀: π₁ - π₂ = 0 states that there is no difference in the proportion of job offers between the two groups, while the alternative hypothesis H₁: π₁ - π₂ ≠ 0 states that there is a significant difference in proportion. Therefore, the correct choice is A.

TABLE 10-11 The Dean of a College Is Interested in the Proportion