The Oxnard Retailers Anti-Theft Alliance (ORATA) Published a Study That

question 98

Multiple Choice

The Oxnard Retailers Anti-Theft Alliance (ORATA) published a study that claimed the causes of disappearance of inventory in retail stores were 30 percent shoplifting, 50 percent employee theft, and 20 percent faulty paperwork. The manager of the Melodic Kortholt Outlet performed an audit of the disappearance of 80 items and found the frequencies shown below. She would like to know if her store's experience follows the same pattern as other retailers. $$\begin{array} { | l | c | c | c | } \hline \text { Reason } & \text { Shoplifting } & \text { Employee Theft } & \text { Poor Paperwork } \\\hline \text { Frequency } & 32 & 38 & 10 \\\hline\end{array}$$ Using ? = .05, what can you conclude from your analysis?

• A)The store's pattern is clearly significantly different from the published data.
• B)The store's pattern is almost, but not quite, significantly different from the published data.
• C)The store's pattern is very close to the published data.
• D)We can form no conclusion because Cochran's Rule is violated.

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