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In an article in Accounting and Business Research, Beattie and Jones investigate the use and abuse of graphic presentations in the annual reports of United Kingdom firms. The authors found that 65 percent of the sampled companies graph at least one key financial variable, but that 30 percent of the graphics are materially distorted (nonzero vertical axis, exaggerated trend, or the like). Results for U.S. firms have been found to be similar. (a) Suppose that in a random sample of 451 graphics from the annual reports of United Kingdom firms, 142 of the graphics are found to be distorted. Find a point estimate of and a 95 percent confidence interval for the proportion of all U.K. annual report graphics that are distorted. (Round your answers to 4 decimal places.) Point estimate The 95 percent confidence interval is (b) Based on this interval, can we be 95 percent confident that more than 25 percent of all graphics appearing in the annual reports of U.K. firms are distorted? Does this suggest that auditors should understand proper graphing methods? Can we be 95 percent confident that more than 25 percent are distorted? Does this suggest that auditors should understand proper graphing methods?

In an article in Accounting and Business Research, Beattie and Jones investigate the use and abuse of graphic presentations in the annual reports of United Kingdom firms. The authors found that 65 percent of the sampled companies graph at least one key financial variable, but that 30 percent of the graphics are materially distorted (nonzero vertical axis, exaggerated trend, or the like). Results for U.S. firms have been found to be similar. (a) Suppose that in a random sample of 451 graphics from the annual reports of United Kingdom firms, 142 of the graphics are found to be distorted. Find a point estimate of and a 95 percent confidence interval for the proportion of all U.K. annual report graphics that are distorted. (Round your answers to 4 decimal places.) Point estimate The 95 percent confidence interval is (b) Based on this interval, can we be 95 percent confident that more than 25 percent of all graphics appearing in the annual reports of U.K. firms are distorted? Does this suggest that auditors should understand proper graphing methods? Can we be 95 percent confident that more than 25 percent are distorted? Does this suggest that auditors should understand proper graphing methods?

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter4: Equations Of Linear Functions
Section4.5: Correlation And Causation
Problem 27PFA
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In an article in Accounting and Business Research, Beattie and Jones investigate the use and abuse of graphic presentations in the annual reports of United Kingdom firms. The authors found that 65 percent of the sampled companies graph at least one key financial variable, but that 30 percent of the graphics are materially distorted (nonzero vertical axis, exaggerated trend, or the like). Results for U.S. firms have been found to be similar. (a) Suppose that in a random sample of 451 graphics from the annual reports of United Kingdom firms, 142 of the graphics are found to be distorted. Find a point estimate of and a 95 percent confidence interval for the proportion of all U.K. annual report graphics that are distorted. (Round your answers to 4 decimal places.) Point estimate The 95 percent confidence interval is (b) Based on this interval, can we be 95 percent confident that more than 25 percent of all graphics appearing in the annual reports of U.K. firms are distorted? Does this suggest that auditors should understand proper graphing methods? Can we be 95 percent confident that more than 25 percent are distorted? Does this suggest that auditors should understand proper graphing methods?
Transcribed Image Text:In an article in Accounting and Business Research, Beattie and Jones investigate the use and abuse of graphic presentations in the annual reports of United Kingdom firms. The authors found that 65 percent of the sampled companies graph at least one key financial variable, but that 30 percent of the graphics are materially distorted (nonzero vertical axis, exaggerated trend, or the like). Results for U.S. firms have been found to be similar. (a) Suppose that in a random sample of 451 graphics from the annual reports of United Kingdom firms, 142 of the graphics are found to be distorted. Find a point estimate of and a 95 percent confidence interval for the proportion of all U.K. annual report graphics that are distorted. (Round your answers to 4 decimal places.) Point estimate The 95 percent confidence interval is (b) Based on this interval, can we be 95 percent confident that more than 25 percent of all graphics appearing in the annual reports of U.K. firms are distorted? Does this suggest that auditors should understand proper graphing methods? Can we be 95 percent confident that more than 25 percent are distorted? Does this suggest that auditors should understand proper graphing methods?
(c) Determine the sample size needed in order to be 95 percent confident that P, the sample proportion of U.K. annual report graphics that are distorted, is within a margin of error of .03 of p, the population proportion of U.K. annual report graphics that are distorted. (Round your answer up to the nearest whole number.) The sample size is
Transcribed Image Text:(c) Determine the sample size needed in order to be 95 percent confident that P, the sample proportion of U.K. annual report graphics that are distorted, is within a margin of error of .03 of p, the population proportion of U.K. annual report graphics that are distorted. (Round your answer up to the nearest whole number.) The sample size is
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