Problem

Spending on information systems technology. University of Queensland researchers sampled p...

Spending on information systems technology. University of Queensland researchers sampled private-sector and public-sector organizations in Australia to study the planning undertaken by their information systems departments. (Management Science, July 1996.) As part of the process, they asked each sample organization how much it had spent on information systems and technology in the previous fiscal year, as a percentage of the organization’s total revenues. Tire results are reported in the next table:

a. Do the two sampled populations have identical probability distributions, or is the distribution for public-sector organizations in Australia located to the right of the distribution for Australia’s private-sector firms? Test using α = .05.


b. Is the p-value for the test less than or greater than .05? Justify your answer.


c. What assumption must be met to ensure the validity of the test you conducted in part a?

INFOSYS

Private Sector

Public Sector

2.58%

5.40%

5.05

2.55

.05

9.00

2.10

10.55

4.30

1.02

2.25

5.11

2.50

24.42

1.94

1.67

2.33

3.33

Adapted from Harm, J., and Weber, R. “Information systems planning: A model and empirical tests." Management Science, Vol. 42, No. 2 July 1996, pp. 1043-1064.

Step-by-Step Solution

Request Professional Solution

Request Solution!

We need at least 10 more requests to produce the solution.

0 / 10 have requested this problem solution

The more requests, the faster the answer.

Request! (Login Required)


All students who have requested the solution will be notified once they are available.
Add your Solution
Textbook Solutions and Answers Search