To evaluate if auditors might be helped in determining the chances of fraud if they carefully measure cash flow, samples of midlevel auditors from CPA firms were asked to indicate the chance of material fraud on a scale from 0 to 100 for a case. A random sample of 36 auditors used the cash-flow information. Their mean assessment was 33.56, and the sample standard deviation was 22.93. For an independent random sample of 36 auditors not using the cash-flow information, the sample mean and standard deviation were respectively 45.76 and 27.65. Test at the 10% level the assumption that the population variances were the same for auditors using cash-flow information as for auditors not using cash-flow information against a two-sided hypothesis. Assume the populations are normally distributed. To test the assumption that the population variances for assessments of the chance of material fraud were the same for auditors using cash-flow information as for auditors not using cash-flow information against a two-sided hypothesis, identify the null and alternative hypotheses. Choose the correct answer below. OA. Ho: 0² so² H₁:0² > 0² Ho: 0²20² H₁:0² <0² The test statistic is F = B. H₁: 0² = 0² H₁:0² *0² OD. Ho: 0² 50² H₁:0² <0² (Round to three decimal places as needed.)
To evaluate if auditors might be helped in determining the chances of fraud if they carefully measure cash flow, samples of midlevel auditors from CPA firms were asked to indicate the chance of material fraud on a scale from 0 to 100 for a case. A random sample of 36 auditors used the cash-flow information. Their mean assessment was 33.56, and the sample standard deviation was 22.93. For an independent random sample of 36 auditors not using the cash-flow information, the sample mean and standard deviation were respectively 45.76 and 27.65. Test at the 10% level the assumption that the population variances were the same for auditors using cash-flow information as for auditors not using cash-flow information against a two-sided hypothesis. Assume the populations are normally distributed. To test the assumption that the population variances for assessments of the chance of material fraud were the same for auditors using cash-flow information as for auditors not using cash-flow information against a two-sided hypothesis, identify the null and alternative hypotheses. Choose the correct answer below. OA. Ho: 0² so² H₁:0² > 0² Ho: 0²20² H₁:0² <0² The test statistic is F = B. H₁: 0² = 0² H₁:0² *0² OD. Ho: 0² 50² H₁:0² <0² (Round to three decimal places as needed.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:To evaluate if auditors might be helped in determining the chances of fraud if they carefully measure cash flow, samples
of midlevel auditors from CPA firms were asked to indicate the chance of material fraud on a scale from 0 to 100 for a
case. A random sample of 36 auditors used the cash-flow information. Their mean assessment was 33.56, and the
sample standard deviation was 22.93. For an independent random sample of 36 auditors not using the cash-flow
information, the sample mean and standard deviation were respectively 45.76 and 27.65. Test at the 10% level the
assumption that the population variances were the same for auditors using cash-flow information as for auditors not
using cash-flow information against a two-sided hypothesis. Assume the populations are normally distributed.
To test the assumption that the population variances for assessments of the chance of material fraud were the same for
auditors using cash-flow information as for auditors not using cash-flow information against a two-sided hypothesis,
identify the null and alternative hypotheses. Choose the correct answer below.
OA. Ho: 0² so²
H₁:0² > 0²
Ho: 0²20²
H₁:0² <0²
The test statistic is F =
B.
H₁: 0² = 0²
H₁:0² *0²
OD. Ho: 0² 50²
H₁:0² <0²
(Round to three decimal places as needed.)
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