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There is an increasing concern among auditors about the possibility of fraud in large corporations. The auditors think that the chances of fraud detection could be increased by measuring the cash flow. To evaluate this possibility, a random sample of 41 qualified auditors used cash flow information from a past fraud case, and were asked to indicate the chance of fraud on a scale from 0 to 100. The sample mean for the assessment was 38.21 with a sample standard deviation of 2.98. Another 41 auditors were asked to indicate the chance of fraud for the same case but without using cash ?ow information. They had a sample mean of 40.56 and a sample standard deviation of 2.56
At the 10% significance level, test whether there is enough evidence to conclude that there is a difference on the assessment of fraud by the auditors using the cash flow information and the sample not using this information.
If you wanted to know whether cashflow really does increase the chance of fraud detection, how would you amend to the hypothesis test you just performed?
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