The records of a casualty insurance company show that, in the past, its clients have had a mean of 1.7 auto accidents per day with a standard deviation of 0.06. The actuaries of the company claim that the standard deviation of the number of accidents per day is no longer equal to 0.06. Suppose that we want to carry out a hypothesis test to see if there is support for the actuaries' claim. State the null hypothesis H, and the alternative hypothesis H, that we would use for this test. H: 0 O

The records of a casualty insurance company show that, in the past, its clients have had a mean of 1.7 auto accidents per day with a standard deviation of 0.06. The actuaries of the company claim that the standard deviation of the number of accidents per day is no longer equal to 0.06. Suppose that we want to carry out a hypothesis test to see if there is support for the actuaries' claim. State the null hypothesis H, and the alternative hypothesis H, that we would use for this test. H: 0 O

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter8: Specialized Audit Tools: Attributes Sampling, Monetary Unit Sampling, And Data Analytics Tools

Section: Chapter Questions

Problem 15CYBK

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You are testing the null hypothesis that there is no relationship between two variables, X and Y. From your sample of n = 20, you determine that SSR = 80 and SSE 20. Complete parts (a) through (e) below. a. What is the value of FSTAT? State the hypotheses to test. Choose the correct answer below. OA H B₁50 H₁ B₁0 OC. Ho B₁ #0 H₁ = B₁ = 0 = 72 (Round to the nearest integer as needed) FSTAT = b. At the a=0.05 level of significance, what is the critical value? The critical value is 4.41 (Round to two decimal places as needed.) c. Based on your answers to (3) and (b), what statistical decision should you make? A. Reject H. There is no evidence that there is a relationship between X and Y. OB. Do not reject H. There is no evidence that there is a relationship between X and Y. OC. Do not reject H,. There is evidence that there is a relationship between X and Y D. Reject H. There is evidence that there is a relationship between X and Y. d. Compute the correlation coefficient by first…
You are testing the null hypothesis that there is no relationship between two variables. X and Y. From your sample of n = 20, you determine that SSR-80 and SSE 20. Complete parts (a) through (e) below. a. What is the value of FSTAT? State the hypotheses to test. Choose the correct answer below. OA Ho B₁50 H₁: B₁>0 OC. Ho B₁0 FSTAT H₁: B₁ =0 =72 (Round to the nearest integer as needed.) b. At the a=0.05 level of significance, what is the critical value? The critical value is 4.41 (Round to two decimal places as needed.) c. Based on your answers to (a) and (b), what statistical decision should you make? OA. Reject Ho. There is no evidence that there is a relationship between X and Y. OB. Do not reject Ho. There is no evidence that there is a relationship between X and Y. OC. Do not reject Ho. There is evidence that there is a relationship between X and Y. D. Reject Ho. There is evidence that there is a relationship between X and Y. d. Compute the correlation coefficient by first…
Which one of the sentences below is FALSE? A. The risk of incorrect acceptance called beta risk has the consequence that the auditor may assume that the population is free of material misstatement. B. The risk of incorrect rejection is called alpha risk and has the consequence that the auditor may assume on the basis of sample results that a population is materially misstated when, in fact, it is not . C. The risk of incorrect acceptance is called beta risk. D. The risk of incorrect rejection very common in audit sampling is called beta risk.
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Suppose the following data represent the number of persons unemployed for a given number of months in Killeen, Texas. The values in the first column show the number of months unemployed and the values in the second column show the corresponding number of unemployed persons. Let x be a random variable indicating the number of months a randomly selected person is unemployed. Use the data to develop an empirical discrete probability distribution for x. Show that your probability distribution satisfies the conditions for a valid discrete probability distribution. What is the probability that a person is unemployed for two months or less? Unemployed for more than two months? What is the probability that a person is unemployed for more than six months?
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