Question

An auditor for a hardware store chain wished to compare the efficiency of two different auditing techniques. To do this he selected a sample of nine store accounts and applied auditing techniques A and B to each of the nine accounts selected. The number of errors found in each of techniques A and B is listed in the table below:

Errors in A	Errors in B
27	13
30	19
28	21
30	19
34	36
32	27
31	31
22	23
27	32

Does the data provide sufficient evidence to conclude that the number of errors in auditing technique A is fewer than the number of errors in auditing technique B at the 0.01 level of significance? Select the [Rejection Region, Decision of Reject (RH₀) or Failure to Reject (FRH₀)]. (Hint: the samples are dependent)

a) [z < -2.9 and -z < -2.9, FRH₀]

b) [t < -2.9, FRH₀]

c) [-t < 2.9 and t < 2.9, RH₀]

d) [t > 2.9, FRH₀]

e) [t < -2.9 or -t < -2.9, RH₀]

f) None of the above

Answer 1

The statistical software output for this problem is:

Hence,

[t < -2.9, FRH0]

Option B is correct.