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 test statistic for the hypothesis test is approximately 1.153 and,therefore,the null hypothesis is not rejected.

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 test statistic for the hypothesis test is approximately 1.153 and,therefore,the null hypothesis is not rejected.

Quizplus · Accepted Answer

The question mentions that the null hypothesis is not rejected at a significance level of 0.05, indicating that there is insufficient evidence to conclude that the proportion of accounts receivables with errors in Division 1 exceeds that of Division 2. Therefore, the statement "the null hypothesis is not rejected" is true, making option A the correct answer.

An Accounting Firm Has Been Hired by a Large Computer