An accounting firm has been hired by a large computer company to determine whether the proportion of accounts receivables with errors in one division (Division 1)exceeds that of the second division (Division 2).The managers believe that such a difference may exist because of the lax standards employed by the first division.To conduct the test,the accounting firm has selected random samples of accounts from each division with the following results.
Based on this information,and using a significance level equal to 0.05,the pooled estimator for the overall proportion is = .1050.

Question

An accounting firm has been hired by a large computer company to determine whether the proportion of accounts receivables with errors in one division (Division 1)exceeds that of the second division (Division 2).The managers believe that such a difference may exist because of the lax standards employed by the first division.To conduct the test,the accounting firm has selected random samples of accounts from each division with the following results.
  Based on this information,and using a significance level equal to 0.05,the pooled estimator for the overall proportion is  = .1050.

Quizplus · Accepted Answer

The statement is true as the pooled estimator for the overall proportion provided in the question (0.1050) suggests that there is a common proportion of accounts with errors in both divisions.

An Accounting Firm Has Been Hired by a Large Computer