Question

# An auditor for a hardware store chain wished to compare the efficiency of two different auditing...

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 (RH0) or Failure to Reject (FRH0)]. (Hint: the samples are dependent)

a) [t < -2.9 or -t < -2.9, RH0]

b) [-t < 2.9 and t < 2.9, RH0]

c) [t > 2.9, FRH0]

d) [t < -2.9, FRH0]

e) [z < -2.9 and -z < -2.9, FRH0]

f) None of the above

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

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