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To evaluate if auditors might be helped in determining the chances of fraud if they carefully measure cash flow, samples of midlevel auditors from
To evaluate if auditors might be helped in determining the chances of fraud if they carefully measure cash flow, samples of midlevel auditors from CPA firms were asked to indicate the chance of material fraud on a scale from 0 to 100 for a case. A random sample of 46 auditors used the cash-flow information. Their mean assessment was 38.43, and the sample standard deviation was 21.65. For an independent random sample of 46 auditors not using the cash-flow information, the sample mean and standard deviation were, respectively, 54.63 and 27.39. Assuming that the two population distributions are normal with equal variances, test against a two-sided alternative the null hypothesis that the population means are equal. (Use = 0.05.) Click the icon to view a table of critical values for the Student's t-distribution. Let x be the mean assessment for auditors who measured cash flow and y be the mean assessment for auditors not using the cash-flow information. Determine the null and alternative hypotheses. Choose the correct answer below. OA. Ho: Hx-Hy=0 H: Hx - Hy 20 OD. Ho: x-y=0 H: Hx - Hy #0 OB. HoHx-Hy0 H: Hx-My >0 OE. Ho HxHy=0 H: Hx-Hy
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