Internal auditors for the city of Austin, Texas,

Internal auditors for the city of Austin, Texas, periodically analyze patterns in parking meter collections. Specifically, the auditors focus on whether daily collection totals for the city’s two collection teams are dramatically different. The auditors feel that the average daily receipt figures for each team should not be dramatically different; large differences between teams could indicate employee thefts or misreporting of receipts. The auditors ask you, as the chief statistician, to run a difference of means test on 200 randomly selected days of receipts (100 days for each team). Present a hypothesis and a null hypothesis, and conduct a difference of means test. Based on your analysis, what can you tell the auditors?

 

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