Using Analytical Procedures as Substantive Tests By Frank A. Buckless and D. Scott Showalter, NC State University
Case Study: Majestic Hotels, Inc.
Case Study: Majestic Hotels, Inc.
Using Analytical Procedures as Substantive Tests
By Frank A. Buckless and D. Scott Showalter, NC State University
BACKGROUND
Majestic Hotels, Inc., a privately-held company, has four hotels located in Charleston, South Carolina; Asheville, North Carolina; Savannah, Georgia; and West Palm Beach, Florida that cater to high-end business and vacation travelers. Bank-loan covenants require that Majestic Hotels, Inc. submit audited financial statements annually to the bank. Specifically, the bank covenants contain revenue and occupancy measures that
…show more content…
While obtaining background information about the client, the staff person learned from the Asheville hotel manager that the Asheville hotel was closed for one week in October because of flooding. Amanda has assessed inherent risk as high and control risk as low for the existence, completeness, and accuracy of sleeping room revenues based on challenging but improving regional and national economic conditions and favorable control procedures associated with sleeping room revenues. Further, after
© 2012 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. © 2012 Frank A. Buckless and D. Scott Showalter
Using Analytical Procedures as Substantive Tests By Frank A. Buckless and D. Scott Showalter, NC State University
Case Study: Majestic Hotels, Inc.
considering the degree of precision required and both quantitative and qualitative factors, Amanda believes that a difference between the expected amount
Cohen’s paper The Earth is Round (p>0.05) is a critique of null-hypothesis significance testing (NHST). In his article, Cohen presents his arguments about what is wrong with NHST and suggests ways in which researchers can improve their research, as well as the way they report their research. Cohen’s main point is that researchers who use NHST often misinterpret the meaning of p-values and what can be concluded from them (Cohen, 1994). Cohen also shows that the NHST is close to worthless. NHST is a way to show how unlikely a result would be if the null hypothesis were true. A Type I error is where the researcher incorrectly rejects a true null hypothesis and a Type II error is where the researcher incorrectly accepts the false null
A. A three year study done by Boston College found that “tests profoundly shape what
Select one (1) project from your working or educational environment that you would use the hypothesis test technique. Next, propose the hypothesis structure (e.g., the null hypothesis, data collection process, confidence interval, test statistics, reject or not reject the decision, etc.) for the business process of the selected project. Provide a rationale for your response.
Brace, N. (2014) ‘Measuring and manipulating variables’ in McAvoy, J. and Brace, N. (eds) Investigating methods, Milton Keynes, The Open University.
done in order to determine the validity of the current tests, and approach it from an unbiased
Under the given circumstances, the conclusion of the author is presumptive and difficult to agree with. To bolster his conclusion, the author needs to provide cogent proof indicating that the test results were unbiased and authentic. He should provide answers to the questions raised above to underscore his
The mission of the hotel is to cater to a professional clientele who is likely to increase the revenues of Amber Inn. These kinds of patrons do not worry about price since most of the times they are covered by the Company they work for and they tend to have a prolonged stay. The necessities of those customers are more regular than the individuals that are on a vacation trip; thus, there is no difficulty to find out what do to. For instance, internet services would suffice those on a business trip whereas those on a leisure trip would worry about entertainment such as live music. Some researchers suggested that, the publicity is unnecessary in determining which hotel to choose. Internet can be a primary factor, as a sales element such as hotels.com. I advise excluding or decreasing ad for almost 4.4 million, lowering the
What inferential tests were used in the analysis of data? How are the the tests appropriate for the research questions?
Dan Shen, a professor at Beijing University, provides an insightful critical analysis of the test. He states that “through the interaction of various details in the text, the implied author suggests
9.Provide an example of each of the four types of test equivalence identified by Lonner (1990).
Edwards (2012) describes a handful of studies in particular that form the foundation for this study. Dahl & Lewin (2002)
Kirk (1996) had major criticisms of NHST. According to Kirk, the procedure does not tell researchers what they want to know: In scientific inference, what we want to know is the probability that the null hypothesis (H0) is true given that we have obtained a set of data (D); that is, p(H0|D). What null hypothesis significance testing tells us is the probability of obtaining these data or more extreme data if the null hypothesis is true, p(D|H0). (p. 747) Kirk (1996) went on to explain that NHST was a trivial exercise because the null hypothesis is always false, and rejecting it is merely a matter of having enough power. In this study, we investigated how textbooks treated this major problem of NHST. Current best practice in this area is open to debate (e.g., see Harlow, Mulaik, & Steiger, 1997). A number of prominent researchers advocate the use of confidence intervals in place of NHST on grounds that, for the most part, confidence intervals provide more information than a significance test and still include information necessary to determine statistical significance (Cohen, Gliner, Leech, & Morgan 85 1994; Kirk, 1996). For those who advocate the use of NHST, the null hypothesis of no difference (nil hypothesis) should be replaced by a null hypothesis specifying some nonzero value based on previous research (Cohen, 1994; Mulaik, Raju, & Harshman, 1997). Thus, there would be less chance that a trivial difference between intervention and control
Efforts to provide a definitive assessment of this problem have been directed toward analyzing the
This chapter gives the procedure of work. It thus states places from which data was collected, the methods of presentation, order of analysis, the different test statistics that will be used in the analysis and the rejection criterion for the different test statistics.
Statistics are part of everyday life. Whether we know it or not we use them in some way, shape or form during the course of our day. Business and medical professionals, sociologists and scientists alike all utilize statistics in order to determine probabilities of outcomes. The purpose of this paper is to discuss what I have learned about statistics in during this class covered during the last five weeks. The topics I will cover inform the class are descriptive statistics, inferential statistics, hypothesis development and testing, selection of appropriate statistical tests and evaluating statistical results. The intent is to discuss the application of the elements in analyzing and making decisions about data.