Math Problem Statement

Auditors must make judgments about various aspects of an audit on the basis of their own direct experience, indirect experience, or a combination of the two. In a study, auditors were asked to make judgments about the frequency of errors to be found in an audit. The judgments by the auditors were then compared to the actual results. Suppose the following data were obtained from a similar study; lower scores indicate better judgments.

DirectIndirectCombination

17.0

16.5

25.1

18.4

22.2

24.0

15.8

20.4

21.4

18.3

18.3

26.9

20.2

24.3

27.4

15.9

19.7

25.7

14.1

20.7

24.5 Find the value of the test statistic. (Round your answer to two decimal places.)

Solution

To find the value of the test statistic for comparing the means of the three groups (Direct, Indirect, and Combination), we will perform a one-way ANOVA (Analysis of Variance). ANOVA tests whether the means of three or more groups are significantly different from each other. Here's the process:

Step 1: State the hypothesis

  • Null hypothesis H0H_0: All group means are equal (μ1=μ2=μ3\mu_1 = \mu_2 = \mu_3).
  • Alternative hypothesis HaH_a: At least one group mean is different.

Step 2: Organize the data

  • Direct: 17.0, 16.5, 25.1, 15.8, 18.3, 20.2, 15.9, 14.1
  • Indirect: 18.4, 22.2, 24.0, 20.4, 21.4, 18.3, 24.3, 19.7, 20.7
  • Combination: 25.1, 24.0, 26.9, 27.4, 25.7, 24.5

Step 3: Calculate ANOVA

We compute the following:

  1. Grand Mean (xˉgrand\bar{x}_\text{grand}): Mean of all observations.
  2. Between-group variance (SSB): Variability due to differences between group means.
  3. Within-group variance (SSW): Variability within each group.
  4. Degrees of freedom:
    • Between groups: dfB=k1df_B = k - 1 where kk is the number of groups.
    • Within groups: dfW=Nkdf_W = N - k where NN is the total number of observations.
  5. Mean square values:
    • MSB=SSBdfBMS_B = \frac{SSB}{df_B}
    • MSW=SSWdfWMS_W = \frac{SSW}{df_W}
  6. F-statistic: F=MSBMSWF = \frac{MS_B}{MS_W}

Let's calculate these values. numpy as np from scipy.stats import f_oneway

Data

direct = [17.0, 16.5, 25.1, 15.8, 18.3, 20.2, 15.9, 14.1] indirect = [18.4, 22.2, 24.0, 20.4, 21.4, 18.3, 24.3, 19.7, 20.7] combination = [25.1, 24.0, 26.9, 27.4, 25.7, 24.5]

Perform ANOVA

f_statistic, p_value = f_oneway(direct, indirect, combination)

Round the F-statistic to two decimal places

f_statistic_rounded = round(f_statistic, 2) f_statistic_roundedThe value of the test statistic (F-statistic) is 15.86.

Would you like a detailed breakdown of the ANOVA calculations or any other related information?

Here are 5 follow-up questions you might explore:

  1. What does the F-statistic value tell us about the group means?
  2. How do we interpret the p-value associated with this F-statistic?
  3. What are the assumptions underlying the ANOVA test?
  4. How would the analysis change if we used a non-parametric test?
  5. How can post-hoc tests help in identifying which groups differ?

Tip: Always check if the assumptions for ANOVA (normality and homogeneity of variance) are met before interpreting the results.

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Math Problem Analysis

Mathematical Concepts

Statistics
Analysis of Variance (ANOVA)
Hypothesis Testing
F-distribution

Formulas

F = MSB / MSW
SSB = Σn_i (mean_i - grand_mean)^2
SSW = ΣΣ(x_ij - mean_i)^2

Theorems

Assumptions of ANOVA
Central Limit Theorem

Suitable Grade Level

Undergraduate Statistics