A study of MBA graduates by Universe for the American Graduate Survey 1999 revealed that MBA graduates have several expectations of prospective employers beyond their base pay. In particular, according to the study 46% expect a performance-related bonus, 46% expect stock options, 42% expect a signing bonus, 28% expect profit sharing, 27% expect extra vacation/personal days, 25% expect tuition reimbursement, 24% expect health benefits, and 19% expect guaranteed annual bonuses. Suppose a study is conducted in an ensuing year to see whether these expectations have changed. If 125 MBA graduates are randomly selected and if 66 expect stock options, does this result provide enough evidence to declare that a significantly higher proportion of MBAs expect stock options? Let If the proportion really is .50, what is the probability of committing a Type II error?
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