Of a random sample of 199 auditors, 104 indicated some measure of agreement with this statement: Cash flow is an important indication of profitability.a. Test, at the 10% significance level against a two-sided alternative, the null hypothesis that one-half of the members of this population would agree with this statement. Also find and interpret the p-value of this test.b. Find the probability of accepting the null hypothesis with a 10%-level test if, in fact, 60% of all auditors agree that cash flow is an important indicator of profitability.

Of a random sample of 199 auditors, 104 indicated some measure of agreement with this statement: Cash flow is an important indication of profitability.a. Test, at the 10% significance level against a two-sided alternative, the null hypothesis that one-half of the members of this population would agree with this statement. Also find and interpret the p-value of this test.b. Find the probability of accepting the null hypothesis with a 10%-level test if, in fact, 60% of all auditors agree that cash flow is an important indicator of profitability.

College Algebra

1st Edition

ISBN:9781938168383

Author:Jay Abramson

Publisher:Jay Abramson

Chapter9: Sequences, Probability And Counting Theory

Section9.7: Probability

Problem 1SE: What term is used to express the likelihood of an event occurring? Are there restrictions on its...

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