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    Research Methods - Assignment II

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    gashaw mekonnen
    This document provides a case study for a hypothesis testing assignment. An accountant wants to test if average quarterly cash shortages have increased from Birr500 with a standard deviation of Birr150. The null hypothesis is that the average has not increased, and the alternative is that the average has increased. A sample of 40 quarterly cash counts had a mean of Birr640. The appropriate test is a one-sample t-test to determine if the new mean is statistically higher than the past average, which would mean internal controls need strengthening.

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    Research Methods - Assignment II

    Uploaded by

    gashaw mekonnen
    187 views2 pages
    This document provides a case study for a hypothesis testing assignment. An accountant wants to test if average quarterly cash shortages have increased from Birr500 with a standard deviation of Birr150. The null hypothesis is that the average has not increased, and the alternative is that the average has increased. A sample of 40 quarterly cash counts had a mean of Birr640. The appropriate test is a one-sample t-test to determine if the new mean is statistically higher than the past average, which would mean internal controls need strengthening.

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    Research Methods - Assignment II (1)

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    This document provides a case study for a hypothesis testing assignment. An accountant wants to test if average quarterly cash shortages have increased from Birr500 with a standard deviation of Birr150. The null hypothesis is that the average has not increased, and the alternative is that the average has increased. A sample of 40 quarterly cash counts had a mean of Birr640. The appropriate test is a one-sample t-test to determine if the new mean is statistically higher than the past average, which would mean internal controls need strengthening.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    187 views2 pages

    Research Methods - Assignment II

    Uploaded by

    gashaw mekonnen
    This document provides a case study for a hypothesis testing assignment. An accountant wants to test if average quarterly cash shortages have increased from Birr500 with a standard deviation of Birr150. The null hypothesis is that the average has not increased, and the alternative is that the average has increased. A sample of 40 quarterly cash counts had a mean of Birr640. The appropriate test is a one-sample t-test to determine if the new mean is statistically higher than the past average, which would mean internal controls need strengthening.

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    © All Rights Reserved
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    ACFN 3111-

    Research Methods in Accounting & Finance

    Chapter II
    Hypothesis Formulation & Testing
    Hand in Assignment – Hypothesis testing
    Given:
    A company’s accountant want to test the adequacy and appropriateness of internal control mechanisms for
    cash. In the past it was believed that the average claim of cash shortage was Birr500 with a standard deviation
    of Birr150. However, the accountant believes that this may have increased due to the high turnover of
    employees. The accountant want to test if the quarterly cash shortage changed and the internal control tools
    should be strengthened. A random sample of 40 quarterly cash counts is taken and gives a mean quarterly
    claim of Birr640.
    Required:
    1. Set the null and alternative hypotheses.
    2. Perform a hypothesis test of whether cash shortages have increased and the internal control tools should
    be improved.
    3. State the rationale for the statistical test that you choose and apply.

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