An Accounting fiRm Is Planning for the Next Tax Preparation

question 73

Multiple Choice

An accounting firm is planning for the next tax preparation season. From last year's returns, the firm
Collects a systematic random sample of 100 filings. The 100 filings showed an average preparation
Time of 90 minutes with a standard deviation of 140 minutes.
What is the probability of finding a sample mean less than 80 minutes?

• A) 0.7143
• B) 0.7625
• C) 0.2375
• D) 0.0180

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Definitions:

Type II Error

The error that occurs when a hypothesis test fails to reject a false null hypothesis, also known as a false negative.

Level Of Significance

The threshold for determining whether a statistical result is not due to chance, often set at 0.05 or 5% in many scientific studies.

Sample Size

The amount of observations or data points obtained from a population for statistical analysis purposes.

Level Of Significance

The threshold for rejecting the null hypothesis in a statistical test, often denoted by alpha and representing the risk of a Type I error.