Employee theft and poor inventory control are equally likely

Reference no: EM1397106

He selected a sample of 100 boxes that had been tampered with and ascertained that, for 47 of the boxes, the missing pants, shoes, and so on were attributed to shoplifting. For 52 other boxes, employees had stolen the goods, and for the remaining 1 boxes he blamed poor inventory control. In his report to the mall management, can he say that shoplifting is twice as likely to be the cause of the loss as compared with either employee theft or poor inventory control and that employee theft and poor inventory control are equally likely? Use the 0.01 significance level.

Reference no: EM1397106

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