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In light of a recent large Corporation bankruptcy, auditors are becoming increasingly concernedabout the possibility of fraud. Auditors might be helped in determining the chances of fraud if they carefully measure cash flow. To evaluate this possibility, samples of midlevel auditors were presented with cash flow information from a fraud case, and they were asked to indicate the chance of material fraud on a scale from 0 to 100. A random sample of 36 auditors used the cash flow information from a fraud case. Their mean assessment was 36.21, and the sample standard deviation was 22.93. For an independent random sample of 36 auditors not using cash-flow information, the sample mean and standard deviation were respectively, 47.56 and 27.56.
a. 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.
b. Assuming that population variancves are NOT euqal conduct the same test in part a.
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In light of a recent large Corporation bankruptcy, auditors are becoming increasingly concernedabout...
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