TABLE 12-2
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 12-2, the hypotheses the dean should use are

Question

TABLE 12-2
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 12-2, 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.

Quizplus · Accepted Answer

The appropriate hypotheses for this scenario involve testing if there is a significant difference in the proportion of accounting majors and economics majors who have a job offer at graduation.

H₀: π₁ - π₂ = 0 (There is no significant difference in the proportion of accounting majors and economics majors who have a job offer at graduation)

H₁: π₁ - π₂ ≠ 0 (There is a significant difference in the proportion of accounting majors and economics majors who have a job offer at graduation)

Option A is the correct choice as it matches these hypotheses. Option B has the incorrect directionality of the hypotheses. Options C and D are testing for one proportion being greater than or less than the other, which is not the specific inquiry in this scenario.

TABLE 12-2 The Dean of a College Is Interested in the Proportion