C a s e 2 2 . 5 C22-05 Every year, the graduates of a particular university are surveyed to…

C a s e 2 2 . 5

C22-05 Every year, the graduates of a
particular university are surveyed to determine their employment status and
annual income. The university offers undergraduate degrees in Arts and Music,
Business Administration and Science, as well as several masters degrees. The
survey asked a random sample of recent graduates the following questions.

1 With which degree did you graduate?

1 Arts and Music

2 Business Administration – non-accounting

3 Business Administration – accounting

4 Science

5 Masters

2 What is your current employment status?

1 Completing
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C a s e 2 2 . 5

C22-05 Every year, the graduates of a
particular university are surveyed to determine their employment status and
annual income. The university offers undergraduate degrees in Arts and Music,
Business Administration and Science, as well as several masters degrees. The
survey asked a random sample of recent graduates the following questions.

1 With which degree did you graduate?

1 Arts and Music

2 Business Administration – non-accounting

3 Business Administration – accounting

4 Science

5 Masters

2 What is your current employment status?

1 Completing additional education

2 Employed

3 Other

4 Unemployed

3 If you are employed, what is your annual
income? The data are recorded in

columns 1 to 7 in the following way: Column
1: Degree Column 2: Employment status Columns 3–7: Income for those employed
with degrees in Art and Music, Business (nonaccounting), Business (accounting),
Science, and Masters, respectively. High school students who are about to
choose a university course would like to know the answer to these questions:

a Are there differences in the employment
rates among the five groups of graduates? (Employment rate is defined as the
percentage of graduates who are employed.)

b Are there differences in income among the
five groups of graduates?

c Among Business Administration graduates,
is there a difference in the employment rates and income between accounting and
non-accounting graduates?

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