In a study of how managers attempt to manage earnings, researchers analyzed a sample of 515 earnings-management attempts from a survey of experienced auditors. The frequency of effects is summarized in the table shown. Research question: At α = .01, is the effect on earn- ings independent of the approach used? (Data are from Mark W. Nelson, John A. Elliott, and Robin L. Tarpley, "How Are Earnings Managed? Examples from Auditors," Accounting Horizons, supplement, 2003, pp.17–35)
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