Author Question: In a recent audit report, an accounting firm stated that the mean sale per customer for the client ... (Read 55 times)

waynest · **on:** Jun 24, 2018

In a recent audit report, an accounting firm stated that the mean sale per customer for the client was estimated to be between 14.50 and 28.50.

Further, this was based on a random sample of 100 customers and was computed using 95 percent confidence. Provide a correct interpretation of this confidence interval estimate.

Question 2

In performing a one-tailed test for the difference between two population variances, which of the following statements is true?

A) The level of alpha needs to be doubled before finding the F-critical value in the table.
B) The sample variance that is predicted to be larger in the alternative hypothesis goes in the numerator when forming the F-test statistic.
C) You always place the larger of the two sample variances in the numerator.
D) The alternative hypothesis must contain the equality.

tdewitt · **Reply #1 on:** Jun 24, 2018

Answer to Question 1

A correct interpretation is: Based on a random sample of 100 customers, with 95 percent confidence, we believe that the true mean sale per customer is in the range 14.50 to 28.50.

Answer to Question 2

B