Cash flow and profits are both crucial aspects of a business. Profit is the surplus revenue after deducting business expenses. Cash flow is the total amount of cash moving in and out of your business. For a business to be successful in the long term, it needs to generate profits while also operating with positive cash flow. During the Covid-19 pandemic, however, of a random sample of 199 auditors, 104 indicated some measure of agreement with this statement: cash flow is more important to keep the business operating on a day-to-day basis. a) Investigate the claim that one-half of the members of this population would agree with this statement. Also, find and interpret the p-value of this test. b) Find the probability of accepting the claim with a 10%-level test if, in fact, 60% of all auditors agree that cash flow is an important indicator to keep the business operating on a day-to-day basis.
Cash flow and profits are both crucial aspects of a business. Profit is the surplus revenue after deducting business expenses. Cash flow is the total amount of cash moving in and out of your business. For a business to be successful in the long term, it needs to generate profits while also operating with positive cash flow. During the Covid-19 pandemic, however, of a random sample of 199 auditors, 104 indicated some measure of agreement with this statement: cash flow is more important to keep the business operating on a day-to-day basis. a) Investigate the claim that one-half of the members of this population would agree with this statement. Also, find and interpret the p-value of this test. b) Find the probability of accepting the claim with a 10%-level test if, in fact, 60% of all auditors agree that cash flow is an important indicator to keep the business operating on a day-to-day basis.
Linear Algebra: A Modern Introduction
4th Edition
ISBN:9781285463247
Author:David Poole
Publisher:David Poole
Chapter7: Distance And Approximation
Section7.3: Least Squares Approximation
Problem 31EQ
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![Cash flow and profits are both crucial aspects of a business. Profit is the surplus revenue after deducting
business expenses. Cash flow is the total amount of cash moving in and out of your business. For a
business to be successful in the long term, it needs to generate profits while also operating with positive
cash flow. During the Covid-19 pandemic, however, of a random sample of 199 auditors, 104 indicated
some measure of agreement with this statement: cash flow is more important to keep the business
operating on a day-to-day basis.
a) Investigate the claim that one-half of the members of this population would agree with this
statement. Also, find and interpret the p-value of this test.
b)
Find the probability of accepting the claim with a 10%-level test if, in fact, 60% of all auditors
agree that cash flow is an important indicator to keep the business operating on a day-to-day basis.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe4efc5d4-6cd8-4901-ba01-f1e140289079%2F2ed2a45a-1ad8-4a97-a596-4ca36093df73%2F4xwxaum_processed.png&w=3840&q=75)
Transcribed Image Text:Cash flow and profits are both crucial aspects of a business. Profit is the surplus revenue after deducting
business expenses. Cash flow is the total amount of cash moving in and out of your business. For a
business to be successful in the long term, it needs to generate profits while also operating with positive
cash flow. During the Covid-19 pandemic, however, of a random sample of 199 auditors, 104 indicated
some measure of agreement with this statement: cash flow is more important to keep the business
operating on a day-to-day basis.
a) Investigate the claim that one-half of the members of this population would agree with this
statement. Also, find and interpret the p-value of this test.
b)
Find the probability of accepting the claim with a 10%-level test if, in fact, 60% of all auditors
agree that cash flow is an important indicator to keep the business operating on a day-to-day basis.
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