reports the results of a survey in which managers were asked which methods played a major role in the risk management strategy of their firms. In a sample of 43 oil companies, 22 indicated that risk transfer played a major role, while in a sample of 93 construction companies, 55 reported that risk transfer played a major role. Can we conclude that the proportion of oil companies that employ the method of risk transfer is less than the proportion of construction companies that do? Use alpha 0.05.

Question

Mathematics

Renee Simon

3 June, 00:33

reports the results of a survey in which managers were asked which methods played a major role in the risk management strategy of their firms. In a sample of 43 oil companies, 22 indicated that risk transfer played a major role, while in a sample of 93 construction companies, 55 reported that risk transfer played a major role. Can we conclude that the proportion of oil companies that employ the method of risk transfer is less than the proportion of construction companies that do? Use alpha 0.05.

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Wyatt Moses · Answer 1

Using the level of significance to be 0.05.

Now the ratio of oil companies is given by 22/43=0.51

And the ratio of construction companies is 55/93=0.59

Hence we can conclude and accept the claim that proportion of oil companies that employ the method of risk transfer is less than the proportion of construction companies.

Step-by-step explanation:

First we find the ratio of both companies then we conclude from the result