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

Without seeing the given table or results for the hypothesis test, it cannot be determined whether the null hypothesis is rejected or not. However, based on the information provided, the statement that the test statistic is approximately 1.153 and the null hypothesis is not rejected is consistent with the results of a hypothesis test with a significance level of 0.05. Therefore, the answer is A) True.

An Accounting Firm Has Been Hired by a Large Computer