ACCOUNTING QUANTITATIVE METHODS 516 The International Union of Accountants is a body of many accounting firms across the globe who seeks to improve their reporting of corporate governance. Each year the Board of the International Union of Accountants conducts a review of their compliance with corporate governance. The Accounting Director of the International Union of Accountants was analyzing the average environmental accounting compliance (EAC) scores of the accounting firms under her control (the score is out of 100). Accordingly, she took a sample of 50 accounting firms across the globe and, for each, determined the mean score of this year, last year and the year before last year, the percentage of accountants in each firm who have at least one university degree in accounting, and the type of country. The data is stored in file ECOM5005_2022_s2_BR_data.xlsx with the following variables. Column 1: Accounting firm Column 2: EAC scores this year (at time t) Column 3: EAC scores last year (at time t-1) Column 4: EAC scores the year before last year (at time t-2) Column 4: Percentage of accountants in each firm who have at least one university degree in accounting, recorded as at time t (this year) · 1 = less than 50% · 2 = at least 50% Column 5: Country classification · 1= first world country · 2 = second world country · 3 = third world country ( 1 ) Present a report of your findings (by answering the questions below) as the Accounting Director to the International Union of Accountants. In your report, answer the following questions. 1. Is the percentage of accountants in each firm who have at least one university degree in accounting related to country type? 2. Is there evidence to suggest that this year environmental accounting compliance (EAC) scores of accounting firms which has less than 50% accountants with at least one university degree in accounting is lower than this year environmental accounting compliance (EAC) scores of accounting firms which has at least 50% accountants with at least one university degree in accounting? 3. Is there evidence of different environmental accounting compliance (EAC) scores over the three-year period? · There are two components of your business report that need to be submitted: written report and Excel working file. FUTHER INSTRUCTIONS FOR THE WRITTEN REPORT · The report covers hypothesis tests from Module 5 to Module 8. However, Module 4 which contains data collection and sampling should be discussed in your report. · The report should have the following structure: Introduction, Statistical Analyses (where you perform hypothesis tests for each of the questions) and Conclusions (where you summarize the findings and discuss the limitations). · Your report should also include technique identification and any underlying assumptions required (with checking for the required assumptions). · Why do you use a particular technique? Consider the types of data – quantitative, qualitative or ranked? How many samples? Are these samples independent? · What are the underlying assumptions? Have you checked the assumptions? · If checking for normal distribution, consider to put up the histogram and discuss the shape. · If you found it is not normally distributed, keep doing the test with the underlying assumption, but need to discuss this as one of your limitations in the overall conclusion. · The parameter of interests and populations must be clearly defined. · Checking normal distributions by observing histograms · Histograms can be obtained from Excel · Excel automatically produce the histogram with gap (default at 150%). You need to reduce the gap to 0% (right click to the histogram, then choose Format Data Series, then reduce the Gap Width to 0%). · For each of the hypothesis tests, you need to perform at 3 significance levels (1%, 5% and 10%) and the decision to reject or accept the null hypothesis must refer to all 3 significance levels. · This is a computing assignment. You are expected to use Excel to perform relevant tests. · Descriptive statistics are also obtained from Excel. · You need to describe the procedure of obtaining relevant tests. · The results obtained from Excel are presented in the report. The tables must be clear to read. Each test has to be performed for 3 levels of statistical significance (1%, 5% and 10%). · Do not present 3 tables for each significant level. Please condense all the results in one table only. · For t-test and z-test, Excel reports the results for one-tailed and two-tailed tests. You need to report only the critical value of one-tailed test or two-tailed test depending your alternative hypothesis, but not both. · The following tests are not embedded in Excel: testing for the difference between two proportions, and chi-square test. · You can use Excel for calculations based on textbook formulae, then find critical values from Appendix A of the textbook. · The report must not exceed 12 pages; marks will be deducted for exceeding the limit. Pages must be correctly numbered throughout. · For each required question, perform separate statistical tests to answer the questions. This assignment should be presented in a professional manner and you need to demonstrate that considerable thought has gone into the analysis of data. · The marking criteria for each of the questions should be as follows: · Technique identification: why should you use a certain technique? · Define the populations and parameters of interest · Checking the conditions of the chosen technique: If a certain condition is not met, you keep doing the test as usual but need to discuss the limitation in the Conclusions part · Following 6 steps in the hypothesis testing procedure · Decision to reject or accept the null hypothesis must be referred to all 3 significance levels, that is, 1%, 5% and 10%. Original Accounting firmEAC-Scrs this year (t)EAC-Scrs last year (t-1)EAC-Scrs the year before last year (t-2)Acc-Dgr% at time tCountry classification Firm 144.845.640.013 Firm 245.043.042.113 Firm 350.948.045.813 Firm 444.045.048.013 Firm 558.754.050.012 Firm 652.853.050.022 Firm 751.152.050.713 Firm 854.755.050.913 Firm 957.053.451.313 Firm 1061.360.151.322 Firm 1156.053.052.413 Firm 1258.859.052.913 Firm 1358.255.053.713 Firm 1457.355.054.023 Firm 1554.553.054.113 Firm 1659.458.054.313 Firm 1758.257.055.023 Firm 1859.857.855.113 Firm 1964.962.958.012 Firm 2062.561.059.012 Firm 2159.657.259.023 Firm 2261.760.059.113 Firm 2361.962.060.013 Firm 2464.860.961.922 Firm 2565.764.062.423 Firm 2664.663.062.513 Firm 2762.660.764.522 Firm 2868.267.465.722 Firm 2971.870.067.022 Firm 3069.968.067.323 Firm 3169.670.068.113 Firm 3271.772.069.422 Firm 3368.867.770.012 Firm 3471.373.076.022 Firm 3581.680.183.022 Firm 3656.552.350.612 Firm 3762.561.360.421 Firm 3863.764.562.921 Firm 3965.364.163.121 Firm 4066.163.062.721 Firm 4168.566.665.121 Firm 4269.867.066.821 Firm 4370.172.067.821 Firm 4472.671.670.121 Firm 4573.972.070.621 Firm 4674.273.072.121 Firm 4775.370.574.521 Firm 4877.974.374.321 Firm 4980.278.978.021 Firm 5055.254.052.712