A tax preparation firm is interested in comparing the quality of work at two of its regional offices. The firm randomly selects 250 returns from one office and another 300 from a different office, with the following results:
Office A Office B
Sample Size 250 300
Number of returns with errors 35 27
a. Formulate a null and an alternative hypothesis to test whether there is a difference in the proportion of returns with errors.
b. What are the assumptions, if any, required for this test?
c. Compute the test statistic.
d. Using a level of significance of 5% for the test, what is your conclusion?
e. What is the p-value for this test?
