#1)

Auditors must make judgments about various aspects of an audit on the basis of their own direct experience, indirect experience, or a combination of the two.In a study, auditors were asked to make judgments about the frequency of errors to be found in an audit.The judgments by the auditors were than compared to the actual results.Suppose the data you've been given were obtained from a similar study; lower scores indicate better judgments.

a) Provide a table of descriptive statistics including your preliminary observations.

Direct

Indirect

Combination

Mean

20.55

20.60

17.28

Standard Error

0.55

0.60

0.70

Standard Deviation

2.48

2.68

3.15

Minimum

15.73

14.43

10.60

Maximum

24.82

28.05

22.79

Count

20

20

20

b) State and interpret the 95% confidence intervals for the three samples.

Direct

Indirect

Combination

Upper limit

21.71

21.86

18.75

Lower limit

19.39

19.35

15.81

c) State the null and alternative hypothesis for a test to determine if there is a significant difference in the variances of the bag weights for the two machines.No explanation needed as there is only one way to formulate an ANOVA test.

d) Provide your complete ANOVA table of results.

Source of Variation

SS

df

MS

F

P-value

F crit

treatment

145.17

2

72.58

9.38

0.0003

3.16

error

440.85

57

7.73

Total

586.02

59

e) State your conclusion with interpretation.