Question

In a certain large corporation bankruptcy in Turkey, auditors are becoming increasingly concerned about the possibility of fraud. According to past events, auditors might be helped in determining the chances of fraud if they carefully measure cash flow. To evaluate this possibility, samples of midlevel auditors from MOZ firms were presented with cash-flow information from a fraud case, and they were asked to indicate the chance of material fraud on a scale from 0 to 100. A random sample of 37 auditors used the cash-flow information. Their mean assessment was 22.27, and the sample standard deviation was 10.15. For an independent random sample of 39 auditors not using the cash-flow information, the sample mean and standard deviation were, respectively, 27.26 and 9.66. Assuming that the two population distributions are normal with equal variances, test, against a two-sided alternative, the null hypothesis that the population means are equal.

a. Test statistic value is

b. P-value is

c. Decision (here use "reject" or "fail to reject", but don't forget to explain on the paper!)

Answer 1