Question

The Sarbanes Oxley (SOX) Act was passed in 2002 as a result of corporate scandals and in as attempt to regain public trust in accounting and reporting practices. Two random samples of 1015 executives were surveyed and asked their opinion about accounting practices in both 2000 and in 2006. The table below summarizes all 2030 responses to the question, “Which of the following do you consider most critical to establishing ethical and legal accounting and reporting practices?” Did the distribution of responses differ from 2000 to 2006?

	2000	2006
Training	142	131
IT Security	274	244
Audit Trails	152	173
IT Policies	396	416
No Opinion	51	51

1. Determine and state whether this is a test of Goodness of Fit, a test of homogeneity or a test of association (or independence). Include in your statement a justification for your choice.
2. Write the correct Null and Alternate Hypotheses for the test
3. Perform the test using Minitab (remember to include the output in your Word document)
4. State your decision, and why you made this choice
5. Give a conclusion in the context of the problem. If you make the decision to reject the null hypothesis, be sure to comment on the bar chart.

Answer 1

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