Question

An auditor for a hardware store chain wished to compare the
efficiency of two different auditing techniques. To do this he
selected a sample of nine store accounts and applied auditing
techniques A and B to each of the nine accounts selected. The
number of errors found in each of techniques A and B is listed in
the table below:

Errors in A | Errors in B |

45 | 31 |

48 | 37 |

46 | 39 |

48 | 37 |

52 | 54 |

50 | 45 |

49 | 49 |

40 | 41 |

45 | 50 |

Does the data provide sufficient evidence to conclude that the
number of errors in auditing technique A is greater than the number
of errors in auditing technique B at the 0.01 level of
significance? Select the [Rejection Region, Decision of Reject
(RH_{0}) or Failure to Reject (FRH_{0})]. (Hint:
the samples are dependent)

a) [t < -2.9 or -t < -2.9, RH_{0}]

b) [-t < 2.9 and t < 2.9, RH_{0}]

c) [t > 2.9, FRH_{0}]

d) [t < -2.9, FRH_{0}]

e) [z < -2.9 and -z < -2.9, FRH_{0}]

f) None of the above

Answer #1

**Correct answer:**
c) [t > 2.9, FRH0]

**Explanation**: The value of test statistics is
**1.98.**

The
critical value of t at 0.01 and 8 df is
**2.9**

Here t >2.9 Hence we fail to reject H0

n auditor for a hardware store chain wished to compare the
efficiency of two different auditing techniques. To do this he
selected a sample of nine store accounts and applied auditing
techniques A and B to each of the nine accounts selected. The
number of errors found in each of techniques A and B is listed in
the table below:
Errors in A
Errors in B
27
13
30
19
28
21
30
19
34
36
32
27
31
31...

An auditor for a hardware store chain wished to compare the
efficiency of two different auditing techniques. To do this he
selected a sample of nine store accounts and applied auditing
techniques A and B to each of the nine accounts selected. The
number of errors found in each of techniques A and B is listed in
the table below:
Errors in A
Errors in B
27
13
30
19
28
21
30
19
34
36
32
27
31
31...

1. Based on information from a large insurance company, 67% of
all damage liability claims are made by single people under the age
of 25. A random sample of 54 claims showed that 44 were made by
single people under the age of 25. Does this indicate that the
insurance claims of single people under the age of 25 is higher
than the national percent reported by the large insurance company?
Give the test statistic and your conclusion.
a) z...

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