QUESTION 4 The following table shows the cross-classification of accounting practices (either straight line, declining balance, or both) and country (either France, Germany, or United Kingdom). France Germany United Kingdom Straight Line Declining Balance Both 20 11 30 14 16 15 15 23 13 a. Set up the competing hypotheses to determine if accounting practice and country are dependent. b. What is the degrees of freedom for the test.

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
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ISBN:9780079039897
Author:Carter
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Chapter10: Statistics
Section10.2: Representing Data
Problem 22PFA
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QUESTION 4
The following table shows the cross-classification of accounting practices (either straight line,
declining balance, or both) and country (either France, Germany, or United Kingdom).
France
Germany
United Kingdom
Straight Line
Declining Balance
Both
20
11
30
14
16
15
15
23
13
a. Set up the competing hypotheses to determine if accounting practice and country are
dependent.
b. What is the degrees of freedom for the test.
c. Calculate the value of the test statistic (x?).
d. Compute the p-value.
e. Does the evidence suggest market capitalization and objective are dependent at the 1%
significance level?
Transcribed Image Text:QUESTION 4 The following table shows the cross-classification of accounting practices (either straight line, declining balance, or both) and country (either France, Germany, or United Kingdom). France Germany United Kingdom Straight Line Declining Balance Both 20 11 30 14 16 15 15 23 13 a. Set up the competing hypotheses to determine if accounting practice and country are dependent. b. What is the degrees of freedom for the test. c. Calculate the value of the test statistic (x?). d. Compute the p-value. e. Does the evidence suggest market capitalization and objective are dependent at the 1% significance level?
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