An accounting firm is rying to decide between IT training conducted in-house and

Question

An accounting firm is rying to decide between IT training conducted in-house and the use of third-party consultants. To get some preliminary cost data, each type of training was implemented at two of the firm's offices located in different cities. The table below shows the average annual training cost per employee at each location. Are the mean costs significantly different? Assume that the assumptions for inference are satisfied. Complete parts a through c. Click the icon to view the results. a Write appropriate hypotheses. Let be be the mean cost o train ng in-house and 2 be the mean cost of training using consultants. Choose the correct answer below. IT Training Costs IT Training n In-house 210 Consul Mean SD 180 b) Below is a summary of computer output for this hypothesis test. Explain what the P-value means in this context. 2-Sample t-Test of -u2 * 0; t-Statistic--238 w/303 df; P-o.018 O A. There is about an 18 in 1000 chance that these results are incorrect and they should be accepted as true O B. There is about an 18 in 100 chance that these results are incorrect and they should be accepted as true. O C. If the population means for the two types of training are actually unequal, there is about an 18 in 1000 chance of seeing a difference as large as or larger than the observed difference just from natural sampling variation. D. If the population means or the o ypes of a n ng are actually equal there s about an 18 i 1000 chance of seeing a difference as large as or lar er than he oos ved difference Just om natural sa ing variation. c) State a conclusion about IT costs based on the hypotheses. Use0.05. O A. On average, IT training costs are significantly less expensive when performed in-house compared to outsourcing to a consultant. O B. On average, IT training costs are significanly more expensive when performed in-house compared to outsourcing to a consultant. O C. On average, IT training costs are significanlly different when performed in-house compared to outsourcing to a consultant. O D On average IT training costs are not significantly more or less expensive when performed in-house compared to cutsourcing to a consultant. Print Done

Explanation / Answer

a) for hypothesis: option A is correct

b) option D is correct (as p vlaue is probability of getting the test statitic or more extreme given alternate hypothesis is corect)

c)

option C is correct

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