8-1. A study was undertaken to assess the impact of the consolidation of the Big 4...
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8-1. A study was undertaken to assess the impact of the consolidation of the "Big 4" accounting firms.¹ The article reports a finding of "increased equality among Big 4 auditors at both the national industry level and at the city industry level." It reported that consolidation led to equality of auditor market share. Suppose the data included information on more than 4 firms, and were reported as follows for both before (B) and after (A) the consolidation, in terms of auditor involvement scores: ITO 2005 Xo19qB B: A: 1 2 LO ∞0 5 7 9 8 3 1 3 4 2 2 Firm number 5 6 4 3 4 3 7 2 8 8 9 10 7 1 7 2 5 3 11 7 4 Tam 12 5 6 a. Just by looking at the data, what can you surmise about firms' responses to consolidation. b. Frame your question as a statistical test. C. What are the assumptions you will need to use? d. Decide whether this is a one-tailed or two-tailed test and choose your level of significance. e. Carry out the test and state your conclusions in a paragraph explaining what you have found about the effects of consolidation on auditor involvement. 8-1. A study was undertaken to assess the impact of the consolidation of the "Big 4" accounting firms.¹ The article reports a finding of "increased equality among Big 4 auditors at both the national industry level and at the city industry level." It reported that consolidation led to equality of auditor market share. Suppose the data included information on more than 4 firms, and were reported as follows for both before (B) and after (A) the consolidation, in terms of auditor involvement scores: ITO 2005 Xo19qB B: A: 1 2 LO ∞0 5 7 9 8 3 1 3 4 2 2 Firm number 5 6 4 3 4 3 7 2 8 8 9 10 7 1 7 2 5 3 11 7 4 Tam 12 5 6 a. Just by looking at the data, what can you surmise about firms' responses to consolidation. b. Frame your question as a statistical test. C. What are the assumptions you will need to use? d. Decide whether this is a one-tailed or two-tailed test and choose your level of significance. e. Carry out the test and state your conclusions in a paragraph explaining what you have found about the effects of consolidation on auditor involvement.
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Solution 1 By looking at the data we can find that the care either improved an remained the same it ... View the full answer
Related Book For
Applied Regression Analysis and Other Multivariable Methods
ISBN: 978-1285051086
5th edition
Authors: David G. Kleinbaum, Lawrence L. Kupper, Azhar Nizam, Eli S. Rosenberg
Posted Date:
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