an auditor wishes to test the assumption that the mean value of all accounts receivable in a given firm is $260.00. She will reject this claim on ly if it is clearly contradicted by the sample mean. the sample deviation of 36 accounts is $43, the sample mean is $250, and the levek if significance is 5%.

Question

an auditor wishes to test the assumption that the mean value of all accounts receivable in a given firm is $260.00. She will reject this claim on ly if it is clearly contradicted by the sample mean. the sample deviation of 36 accounts is $43, the sample mean is $250, and the levek if significance is 5%.
a) write out the null and alternative hypotheses.
b)calculate the A test statistic.
c)find the p-value both from A
d)what would be the conclusion of the auditor i.e., reject or not reject? justify answer with p-value 
e)what would be the conclusion of the auditor if the level of significance is 1%(i.e., =.01) justify answer.

PsyDAG · Answer

Ho: mean1 = mean2
Ha: mean1 ≠ mean2

Z = (mean1 - mean2)/standard error (SE) of difference between means

SEdiff = √(SEmean1^2 + SEmean2^2)

SEm = SD/√n

If only one SD is provided, you can use just that to determine SEdiff.

Find table in the back of your statistics text labeled something like "areas under normal distribution" to find the proportion from the Z score.

Ali · Answer

245.95 and 274.05