Corporate sustainability of CPA firms. Refer to the Business and Society (Mar. 2011) study on the sustainability behaviors of CPA corporations, Exercise 7.18

(p. 352).

Recall that the level of support for corporate sustainability (measured on a quantitative scale ranging from 0 to 160 points) was obtained for each in a sample of 992 senior managers at CPA firms. The data (where higher point values indicate a higher level of support for sustainability)

are saved in the referenced file. The CEO of a CPA firm claims that the true mean level of support for sustainability is 75 points.

a. Specify the null and alternative hypotheses for testing this claim.

b. For this problem, what is a Type I error? A Type II error?

c. The SPSS printout at the bottom of this page gives the results of the test. Locate the p-value on the printout.

d. At a = .05, give the appropriate conclusion.

e. What assumptions, if any, about the distribution of support levels must hold true in order for the inference derived from the test to be valid? Explain.

Transcribed Image Text:

SPSS Output for Exercise 8.37 One-Sample Statistics Std. Error N Mean Std. Deviation SUPPORT 992 67.76 26.871 Mean 853 One-Sample Test Test Value = 75 95% Confidence interval of the Difference t df Sig. (2-tailed) Mean Difference Lower SUPPORT -8.492 991 .000 -7.245 -8.92 Upper -5.57