Question:
Accounting Today identified the top accounting firms in 10 geographic regions across the United States.
Even though all 10 regions reported growth in 2011, the Southeast and Gulf Coast regions reported the
highest combined growths, with 18% and 19%, respectively. A characteristic description of the
accounting firms in the Southeast and Gulf Coast regions included the number of partners in the firm.
The file Accounting Partners 2 contains the number of partners. (Data extracted from
www.accountingtoday.com/gallery/Top-100-Accounting-Firms-Data-62569l.html).
a. At the 0.05 level of significance, is there evidence of a difference between Southeast region
accounting firms and Gulf Coast accounting firms with respect to the mean number of partners?
b. Determine the p-value and interpret its meaning.
c. What assumptions do you have to make about the two populations in order to justify the use of the t
test?
Answer:
(a) H0: where Populations: 1 = Southeast, 2 = Gulf Coast
H1:
Accounting Today identified the top accounting firms in 10 geographic regions across the United States.
Even though all 10 regions reported growth in 2011, the Southeast and Gulf Coast regions reported the
highest combined growths, with 18% and 19%, respectively. A characteristic description of the
accounting firms in the Southeast and Gulf Coast regions included the number of partners in the firm.
The file Accounting Partners 2 contains the number of partners. (Data extracted from
www.accountingtoday.com/gallery/Top-100-Accounting-Firms-Data-62569l.html).
a. At the 0.05 level of significance, is there evidence of a difference between Southeast region
accounting firms and Gulf Coast accounting firms with respect to the mean number of partners?
b. Determine the p-value and interpret its meaning.
c. What assumptions do you have to make about the two populations in order to justify the use of the t
test?
Answer:
(a) H0: where Populations: 1 = Southeast, 2 = Gulf Coast
H1:
