IV Choose two of the following (20 Points Each): 1. A survey of CPAS across the
ID: 3322680 • Letter: I
Question
IV Choose two of the following (20 Points Each): 1. A survey of CPAS across the U.S. found that the average net income for sole proprietor CPAs is $102,674. Because this survey is now more than seven years old, an accounting researcher wants to test this figure by taking a random sample of 225 sole proprietor accountants in the U.S. to determine wheth deviation of net incomes for sole proprietor CPAs is $34,530. Determine whether the figure has changed if the sample mean was $98,695. What is your decision regarding this claim? Use either the z or t-test method. Test at the 1% level. (Use all three methods for bonus points.) er the net income figure changed. Assume the population standard 2. The county clerk wants to estimate the proportion of retired voters who will need special election facilities. Suppose a sample of 800 retired voters was taken. If 150 need special election facilities, calculate an 98% confidence interval for the population proportion.Explanation / Answer
Q1.
Given that,
population mean(u)=102674
standard deviation, =34530
sample mean, x =98695
number (n)=225
null, Ho: =102674
alternate, H1: !=102674
level of significance, = 0.01
from standard normal table, two tailed z /2 =2.576
since our test is two-tailed
reject Ho, if zo < -2.576 OR if zo > 2.576
we use test statistic (z) = x-u/(s.d/sqrt(n))
zo = 98695-102674/(34530/sqrt(225)
zo = -1.73
| zo | = 1.73
critical value
the value of |z | at los 1% is 2.576
we got |zo| =1.73 & | z | = 2.576
make decision
hence value of |zo | < | z | and here we do not reject Ho
p-value : two tailed ( double the one tail ) - ha : ( p != -1.73 ) = 0.08
hence value of p0.01 < 0.08, here we do not reject Ho
ANSWERS
---------------
null, Ho: =102674
alternate, H1: !=102674
test statistic: -1.73
critical value: -2.576 , 2.576
decision: do not reject Ho
p-value: 0.08
this is not changed when using the sapmle mean
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