Can someone please answer this using mini tab pretty please :-) AMC accounting f
ID: 3174294 • Letter: C
Question
Can someone please answer this using mini tab pretty please :-) AMC accounting firm has been in business for over 50 years. The firm has a mixed client base and is always looking for ways to improve the operations. Keeping the best interest of the firms and its customers in mind, staff account Josh approached Morgan with an inquiry as the method of payment regarding a major clients account receivables (AR). Please note the following conversation: Jonas: “Mary, I’ve been looking over your clients AR and think that you may have some problems starting soon” Mary: “Thanks Jonas, I was noticing that as well and I can’t determine if the pattern has changed over the years. I did a historical look at past years for the client and noted that their receivables have been paid in a 4:3:2:1 ratio. I took a sample of 340 accounts received over the first business quarter, 2014, and found that the following”: Paid On Time <30 Days Late 30-60 Days Late > Than 60 Days Late 180 90 30 40 Jonas: “That’s interesting but how do we know if the pattern has changed?” Mary: “I don’t know; let’s go ask my boss, Andrew.” Andrew: “What can I do for you guys?” Mary: “Well, Jonas and I were studying one of my major accounts AR pattern and feel that the habits of their customers may have changed. I took a look at some data (noted above) but don’t know how to determine if anything has changed.” Andrew: “That’s a good question; let’s go ask our analyst team if they can help.” Your Part You are the analyst team to which Andrew refers. To complete the assignment, you must: 1. Choose and justify the appropriate statistical test. 2. Discuss and demonstrate the use of the 5 step hypothesis testing method. 3. State the business implications of making a type I error. 4. Provide information to Andrew, Jonas, and Mary as what they should do as a team. Should they alert the client, or has nothing changed? **Please include which type of test is used and why. Preferably use Minitab.
Explanation / Answer
1)
The appropriate statistical test is Chi-Square test for goodness of fit.
Since our sample distribution of AR is differed significantly from the distribution claimed by the company. Here, the variable AR is a categorical like it is a divided into 4 ways.
2)
Consider Null hypothesis.
Null hypothesis, the sample distribution of AR is not differed significantly from the distribution claimed by the company
Consider Alternative hypothesis.
Alternative hypothesis, the sample distribution of AR is differed significantly from the distribution claimed by the company
Assume that the level of significance is 0.05
Calculate the test statistic value includes critical and p-value.
Calculate the expected frequencies for each observed frequency and subtract the expected frequency from the observed frequency and square it.
Divide this squared value with the each respected expected value and add up which gives the test statistic value.
After that calculate the degree of freedom and identify the critical value with respect to their degree o freedom and level of significance.
Compare the calculated value of the test statistic with the critical value.
If calculated value exceeds the critical value then reject the Null hypothesis