# Question: Lucas Lopez is auditing ABC Corporation s accounts receivable There are

Lucas Lopez is auditing ABC Corporation’s accounts receivable. There are 5000 accounts in all. ABC shows a total book value of $ 2,840,000 for accounts receivable. Lucas takes a simple random sample of 100 of the 5000 accounts and finds that the average amount receivable in the sample is $ 579.23, with a sample standard deviation of $ 81.40. Use this sample information to test the hypothesis that ABC’s stated book value is correct. That is, test the null hypothesis that ABC’s total accounts receivable is $ 2,840,000, no more and no less. Use a significance level of 5%.

**View Solution:**## Answer to relevant Questions

Suppose we want to test the following hypotheses regarding a particular population mean: H0: μ < 1500 hours Ha: μ > 1500 hours Assume sample size is 100 and that the population standard deviation is 50. The significance ...Refer to exercise 81, where you had set up a test to test the competing positions H0: μ < 150 applications Ha: μ > 150 applications. Suppose now you want to set up a new test for this situation. In this new test, you plan ...In its Audit of Computerized Criminal History, the Florida Department of Law Enforcement (FDLE) periodically reviews the accuracy and completeness of its criminal history database. The database contains thousands of records. ...You have a random sample of 100 population members from each of two populations. You intend to use sample results to test the following hypotheses: H0: μ1 – μ2 < 0 Ha: μ1 – μ2 > 0 a. Suppose the sample results are ...Refer to Exercise 22. There a study examined the average hospital stay for patients under the care of each of two classes of physicians— hospitalists and general internists. Suppose now that the two population standard ...Post your question