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large accounting firm is trying to determine what fee to charge for next year's returns in order to cover potential additional expenses if the client is later subject to an audit. In previous years, the actual mean cost to the firm for attending a client audit session was $650. To determine if this cost has changed, the firm randomly sampled 32 client audit fees and found a mean audit cost of $685 with a standard deviation of $85. Based upon this information, can the accounting firm conclude that the mean audit cost has changed? Use a .05 level of significance for the test.

large accounting firm is trying to determine what fee to charge for next year's returns in order to cover potential additional expenses if the client is later subject to an audit. In previous years, the actual mean cost to the firm for attending a client audit session was $650. To determine if this cost has changed, the firm randomly sampled 32 client audit fees and found a mean audit cost of $685 with a standard deviation of $85. Based upon this information, can the accounting firm conclude that the mean audit cost has changed? Use a .05 level of significance for the test.

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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A large accounting firm is trying to determine what fee to charge for next year's returns in order to cover potential additional expenses if the client is later subject to an audit. In previous years, the actual mean cost to the firm for attending a client audit session was $650. To determine if this cost has changed, the firm randomly sampled 32 client audit fees and found a mean audit cost of $685 with a standard deviation of $85. Based upon this information, can the accounting firm conclude that the mean audit cost has changed? Use a .05 level of significance for the test.

 

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