Question 7

Multitek's auditor wants to test the hypothesis that the average value of inventory (computers and computer accessories) is $2,000. A random sample of 100 items from the inventory list yields a calculated value of $212,400. The observed difference between the value in the inventory list and the value determined by the auditor for the items in the sample results in a standard deviation of $500. The hypothesis test would be done at the 1% significance level. What is the value of the reduced deviation Z for this test? a) 1,771 b) 1,378 c) 2,48 d) 2,067 e) 2,58 f) 1,55