/*! This file is auto-generated */ .wp-block-button__link{color:#fff;background-color:#32373c;border-radius:9999px;box-shadow:none;text-decoration:none;padding:calc(.667em + 2px) calc(1.333em + 2px);font-size:1.125em}.wp-block-file__button{background:#32373c;color:#fff;text-decoration:none} Q32E Corporate sustainability of CPA ... [FREE SOLUTION] | 91影视

91影视

Log out

Learning Materials

Features

Discover

Chapter 7: Q32E (page 408)

Corporate sustainability of CPA firms. Refer to the Business and Society (March 2011) study on the sustainability behaviors of CPA corporations, Exercise 6.12 (p. 339). Recall that the level of support for corporate sustainability (measured on a quantitative scale ranging from 0 to 160 points) was obtained for each in a sample of 992 senior managers at CPA firms.

The data (where higher point values indicate a higher level of support for sustainability) are saved in the accompanying file. The CEO of a

CPA firm claims that the true mean level of support for sustainability is 75 points.

a. Specify the null and alternative hypotheses for testing this claim.

b. For this problem, what is a Type I error? A Type II error?

c. The XLSTAT printout shown above gives the results of the test. Locate the test statistic and p-value on the printout.

d. At 伪 = .05, give the appropriate conclusion.

e. What assumptions, if any, about the distribution of support levels must hold true in order for the inference derived from the test to be valid? Explain.

Short Answer

Expert verified

a. The null and alternative hypotheses for the testing of the CEO鈥檚 claim are:

H0: 渭 = 75 Against H0: 渭 鈮� 75.

b. A Type I error occurs when one rejects the CEO鈥檚 claim; in fact, it is true.

A Type II error occurs when one is unable to reject the CEO鈥檚 claim; when it is false.

c. The statistic for the hypothesis from the provided output is: z = -8.4920.

The p-value for the test isp< 0.0001.

d. Reject the CEO鈥檚 claim that the true mean level of support for sustainability is 75 points.

e. The assumption required to use the z-test is the sample size is sufficiently large, and the population standard deviation is known.

Step by step solution

01

Given information

The data on the level of support for corporate sustainability for 992 managers at CPA firms is provided.

Need to test the CEO鈥檚 claim that the true mean level of support for sustainability is 75 points.

02

Specifying the null and alternative hypothesis

a.

let 渭represents the true mean level of support for sustainability.

The null and alternative hypotheses for the testing of the CEO鈥檚 claim are:

H0: 渭 = 75 Against H0:渭 鈮� 75.

03

Identifying the types of errors in hypothesis testing

b.

A Type I error occurs when one rejects the CEO鈥檚 claim; in fact, it is true.

A Type II error occurs when one is unable to reject the CEO鈥檚 claim; when it is false.

04

Identifying the types of errors in hypothesis testing

The statistic for the hypothesis from the provided output is: z = -8.4920.

The p-value for the test is p< 0.0001.

05

Drawing the conclusions

d.

The p-value for the hypothesis test is less than the significance level 伪 = 0.05.

Therefore, reject the CEO鈥檚 claim that the true mean level of support for sustainability is 75 points.

06

Checking the underlying assumptions

e.

The assumption required to use the z-test are sample size is sufficiently large, and the population standard deviation is known.

Here the sample size is too large; therefore, the assumption to use the z-test is satisfied.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Over 30 million students worldwide already upgrade their learning with 91影视!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

Specify the differences between a large-sample and a small-sample test of a hypothesis about a population mean m. Focus on the assumptions and test statistics.

Question: Testing the placebo effect. The placebo effect describes the phenomenon of improvement in the condition of a patient taking a placebo鈥攁 pill that looks and tastes real but contains no medically active chemicals. Physicians at a clinic in La Jolla, California, gave what they thought were drugs to 7,000 asthma, ulcer, and herpes patients. Although the doctors later learned that the drugs were really placebos, 70% of the patients reported an improved condition. Use this information to test (at 伪 = 0.05) the placebo effect at the clinic. Assume that if the placebo is ineffective, the probability of a patient鈥檚 condition improving is 0.5.

Play Golf America program. The Professional Golf Association (PGA) and Golf Digest have developed the Play Golf America program, in which teaching professionals at participating golf clubs provide a free 10-minute lesson to new customers. According to Golf Digest, golf facilities that participate in the program gain, on average, \(2,400 in greens fees, lessons, or equipment expenditures. A teaching professional at a golf club believes that the average gain in greens fees, lessons, or equipment expenditures for participating golf facilities exceeds \)2,400.

a. In order to support the claim made by the teaching professional, what null and alternative hypotheses should you test?

b. Suppose you select伪 = 0.05. Interpret this value in the words of the problem.

c. For 伪 = 0.05, specify the rejection region of a large sample test.

A border protection avatar. The National Center for Border Security and Protection has developed the "Embodied Avatar"鈥攁 kiosk with a computer-animated border guard that uses artificial intelligence to scan passports, check fingerprints, read eye pupils, and asks questions of travellers crossing the U.S. border. (National Defense Magazine, February 2014.) Based on field tests, the avatar's developer claims that the avatar can detect deceitful speech correctly 75% of the time.

a. Identify the parameter of interest.

b. Give the null and alternative hypotheses for testing the claim made by the avatar's developer.

c. Describe a Type I error in the words of the problem.

d. Describe a Type II error in the words of the problem

Factors that inhibit learning in marketing. What factors inhibit the learning process in the classroom? To answer this question, researchers at Murray State University surveyed 40 students from a senior-level marketing class (Marketing Education Review). Each student was given a list of factors and asked to rate the extent to which each factor inhibited the learning process in courses offered in their department. A 7-point rating scale was used, where 1 = 鈥渘ot at all鈥� and 7 = 鈥渢o a great extent.鈥� The factor with the highest rating was instructor related: 鈥淧rofessors who place too much emphasis on a single right answer rather than overall thinking and creative ideas.鈥� Summary statistics for the student ratings of this factor are\(\overline x = 4.70\),\(s = 1.62\)

a. Conduct a test to determine if the true mean rating for this instructor-related factor exceeds 4. Use\(\alpha = 0.05\).Interpret the test results.

b. Examine the results of the study from a practical view, and then discuss why 鈥渟tatistically significant鈥� does not always imply 鈥減ractically significant.鈥�

c. Because the variable of interest, rating, is measured on a 7-point scale, it is unlikely that the population of ratings will be normally distributed. Consequently, some analysts may perceive the test, part a, to be invalid and search for alternative methods of analysis. Defend or refute this argument
See all solutions

Recommended explanations on Math Textbooks

Applied Mathematics

Read Explanation

Geometry

Read Explanation

Calculus

Read Explanation

Logic and Functions

Read Explanation

Discrete Mathematics

Read Explanation

Theoretical and Mathematical Physics

Read Explanation
View all explanations

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.