Answered step by step
Verified Expert Solution
Question
1 Approved Answer
An accounting firm that specializes in auditing the financial records of large corporations is interested in evaluating the appropriateness of the fees it charges for
An accounting firm that specializes in auditing the financial records of large corporations is interested in evaluating the appropriateness of the fees it charges for its services. As part of its evaluation it wants to compare the costs it incurs in auditing corporations of different sizes. The accounting firm decided to measure the size of its client corporations in terms of their yearly sales. Accordingly, its population of client corporations was divided into three subpopulations: A: Those wwiht sales over $250 million B: Those with sales between $100 million and $250 million C: those with sales under $100 million The firm choose random samples of ten corporations from each of the subpopulations and determined the costs (in thousands of dollars) given in the table from its records. A B C 250 100 80 150 150 125 275 75 20 100 200 186 475 55 52 600 80 92 150 110 88 800 160 141 325 132 76 230 333 200 Points Tasks 1. Create three box plots. Based on these box plots, do you believe that a significant difference exists among the subpopulation means? Explain how to reach the conclusion. 2. Use Google Sheets to generate an ANOVA output, and conduct the hypothesis test use alpha = 0.05. 3. What is the observed significance level for the test in part 2? 4. What assumptions must be met in order to assure the validity of the inferences you made in part 2
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started