n recent years major efforts have been made to standardize accounting practices in different countries; this is called harmonization. In an article in Accounting and Business Research, Emmanuel N. Emenyonu and Sidney J. Gray studied the extent to which accounting practices in France, Germany, and the U.K. are harmonized. (a) Depreciation method is one of the accounting practices studied by Emenyonu and Gray. Three methods were considered—the straight-line method (S), the declining balance method (D), and a combination of D & S(sometimes European firms start with the declining balance method and then switch over to the straight-line method when the figure derived from straight line exceeds that from declining balance). The data in the table (below) summarize the depreciation methods used by a sample of 78 French, German, and U.K. firms. Depreciation Methods France Germany UK Total A. Straight line (S) 15 0 25 40 B. Declining Bal (D) 1 1 1 3 C. (D & S) 10 25 0 35 Total companies 26 26 26 78 Chi-Square Test for Independence France Germany UK Total A. Straight line (S) 15 0 25 40 B. Declining Bal (D) 1 1 1 3 C. (D & S) 10 25 0 35 Total 26 26 26 78 50.894 chisquare 4 df 0.0000 p-value Click here for the Excel Data File Use these data and the results of the chi-square analysis in the table (above) to test the hypothesis that depreciation method is independent of a firm's location (country) at the .05 level of significance. (Round your answer to 3 decimal places.) X^2=? check_circle Expert Answer thumb_up thumb_down Step 1 An independent chi-square output is provided. Step 1 Name the hypotheses. Null hypothesis: H0: Depreciation method depends on the location of the firm. Another hypothesis: H1: The depreciation method is not independent of the firm's location. Step 2 Rejection Act: If the P-value is less than or equal to 0.05, it rejects the null hypothesis. Conclusion: From the given output, the P value is 0.000. This is less than 0.05. By rejection law, reject the null hypothesis. Therefore, the depreciation method is not independent of the firm's location. DO NOT COPY AND PASTE THIS ANSWER! I NEED HELP FINING X^2!!!??
In recent years major efforts have been made to standardize accounting practices in different countries; this is called harmonization. In an article in Accounting and Business Research, Emmanuel N. Emenyonu and Sidney J. Gray studied the extent to which accounting practices in France, Germany, and the U.K. are harmonized.
(a) Depreciation method is one of the accounting practices studied by Emenyonu and Gray. Three methods were considered—the straight-line method (S), the declining balance method (D), and a combination of D & S(sometimes European firms start with the declining balance method and then switch over to the straight-line method when the figure derived from straight line exceeds that from declining balance). The data in the table (below) summarize the depreciation methods used by a sample of 78 French, German, and U.K. firms.
| Depreciation | ||||
| Methods | France | Germany | UK | Total |
| A. Straight line (S) | 15 | 0 | 25 | 40 |
| B. Declining Bal (D) | 1 | 1 | 1 | 3 |
| C. (D & S) | 10 | 25 | 0 | 35 |
| Total companies | 26 | 26 | 26 | 78 |
| Chi-Square Test for Independence | ||||
| France | Germany | UK | Total | |
| A. Straight line (S) | 15 | 0 | 25 | 40 |
| B. Declining Bal (D) | 1 | 1 | 1 | 3 |
| C. (D & S) | 10 | 25 | 0 | 35 |
| Total | 26 | 26 | 26 | 78 |
| 50.894 chisquare | 4 df | 0.0000 | p-value | |
Click here for the Excel Data File
Use these data and the results of the chi-square analysis in the table (above) to test the hypothesis that depreciation method is independent of a firm's location (country) at the .05 level of significance. (Round your answer to 3 decimal places.)
X^2=?
Expert Answer
An independent chi-square output is provided.
Step 1
Name the hypotheses.
Null hypothesis:
H0: Depreciation method depends on the location of the firm.
Another hypothesis:
H1: The depreciation method is not independent of the firm's location.
Rejection Act:
If the P-value is less than or equal to 0.05, it rejects the null hypothesis.
Conclusion:
From the given output, the P value is 0.000.
This is less than 0.05.
By rejection law, reject the null hypothesis.
Therefore, the depreciation method is not independent of the firm's location. DO NOT COPY AND PASTE THIS ANSWER! I NEED HELP FINING X^2!!!??
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