Canadian Accounting classifies accounts receivable as "current", "late", and "not collectible". Industry figures show that 60% of A/R are current, 30% are late, and 10% are uncollectible. A law firm in Markham Ontario has 500 accounts receivable: 320 are current, 120 are late and 60 are not collectible. Are these numbers in agreement with the industry distribution?
Using the data from this Megastat printout, you determine:
A) The Markham firm's data reflect the national average, when tested at the 0.10 level of significance
B) The Markham firm's data reflect the national average, when tested at the 0.05 level of significance
C) The Markham firm's data reflect the national average, when tested at the 0.01 level of significance
D) The Markham firm's data do not reflect the national average, when tested above a 0.01 level of significance
E) A, B and C are true

Question

Canadian Accounting classifies accounts receivable as "current", "late", and "not collectible". Industry figures show that 60% of A/R are current, 30% are late, and 10% are uncollectible. A law firm in Markham Ontario has 500 accounts receivable: 320 are current, 120 are late and 60 are not collectible. Are these numbers in agreement with the industry distribution?  
Using the data from this Megastat printout, you determine:
A) The Markham firm's data reflect the national average, when tested at the 0.10 level of significance 
B) The Markham firm's data reflect the national average, when tested at the 0.05 level of significance 
C) The Markham firm's data reflect the national average, when tested at the 0.01 level of significance 
D) The Markham firm's data do not reflect the national average, when tested above a 0.01 level of significance 
E) A, B and C are true

Quizplus · Accepted Answer

The Answer of Canadian Accounting classifies accounts receivable as "current", "late", and "not collectible". Industry figures show that 60% of A/R are current, 30% are late, and 10% are uncollectible. A law firm in Markham Ontario has 500 accounts receivable: 320 are current, 120 are late and 60 are not collectible. Are these numbers in agreement with the industry distribution?  
Using the data from this Megastat printout, you determine:
A) The Markham firm's data reflect the national average, when tested at the 0.10 level of significance 
B) The Markham firm's data reflect the national average, when tested at the 0.05 level of significance 
C) The Markham firm's data reflect the national average, when tested at the 0.01 level of significance 
D) The Markham firm's data do not reflect the national average, when tested above a 0.01 level of significance 
E) A, B and C are true

Canadian Accounting Classifies Accounts Receivable as "Current", "Late", and "Not