Author Question: An accounting firm has been hired by a large computer company to determine whether the proportion of ... (Read 47 times)

D2AR0N · **on:** Jun 24, 2018

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. Division 1 Division 2Sample Size n1 = 100 n2 = 100Errors found x1 = 13 x2 = 8Based 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. Indicate whether the statement is true or false

Question 2

Of the following techniques for collecting data, which one is generally considered the least costly to implement: experiments, telephone surveys, mail questionnaires, direct observation, personal interview?

What will be an ideal response?

wergv · **Reply #1 on:** Jun 24, 2018

Answer to Question 1

TRUE

Answer to Question 2

In most instances, the mail questionnaire is the least costly method for data collection. Even though response rates are notoriously low, the cost of sending surveys in the mail is very low on a per item basis. However, there are many instances where mail surveys can't be used to collect the required data. For instance, if we are interested in the impact of greater drying heat in the press when plywood is manufactured, we can't very well send a survey to a piece of plywood asking for information about its strength and quality An experiment would be required. In other instances, we need to use observation to get accurate data since people might be tempted to reply with the desired response rather than the truth. For instance, a question like, Do you wear your seatbelt when driving in your car? might not provide accurate data in a written survey. Observation might provide better data on driver behavior.