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Solution for Class 11, Statistics

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Question 77
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While reviewing the sample of audit fees, a senior accountant for the firm notes that the fee charged by the firm's accountants depends on the complexity of the return.A comparison of actual charges therefore might not provide the information needed to set next year's fees. To better understand the fee structure, the senior accountant requests a new sample that measures the time the accountants spent on the audit. Last year, the average hours charged per client audit was 2.97 hours. A new sample of 15 audit times shows the following times in hours. Complete parts a and b below. 4.6 3.1 3.4 4.7 3.2 3.5 4.5 3.8 3.1 4.2 4.9 3.4 3.2 3.4 4.8
  1. a) Assume the conditions necessary for inference are met.Find a 99% confidence interval for the mean audit time
  2. The 99% confidence interval to estimate the mean audit time is fromto Round to two decimal places as needed.)
  3. b Based on your answer to part a,do you think that the audit times have,in fact,increased? A.Since the population mean,2.97.is contained B.Since the population mean.2.97.is below the 99% within the 99% confidence interval,it can be said confidence interval,it can be said with 99% with 99% confidence that the mean audit time has confidence that the mean audit time has increased increased.
  4. O C.Since the population mean,2.97,is above the D.Since the population mean,2.97.is contained 99% confidence interval,it can be said with 99% within the 99% confidence interval,it can be said confidence that the mean audit time has increased with 99% confidence that the mean audit time has not increased
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