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Who prepares your tax return? Refer to the Behavioral Research and Accounting (January 2015) study on income tax compliance, Exercise 5.505.50 (p. 297). Recall that in a sample of 270 U.S. adult workers, the researchers found that 37%37 \% prepare their own tax return. Construct a 99%99 \% confidence interval for the true proportion of all U.S. adult workers who prepare their own tax return.

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Given:

n=Sample size=270p^=Sample proportion=37%=0.37c=Confidence coefficient=99%=0.99\begin{aligned} n&=\text{Sample size}=270 \\ \hat{p}&=\text{Sample proportion}=37\%=0.37 \\ c&=\text{Confidence coefficient}=99\%=0.99 \end{aligned}

We need to determine a confidence interval about the population proportion pp.

The confidence interval about the population proportion is p^±E\hat{p}\pm E with E=zα/2p^q^nE=z_{\alpha/2}\cdot \sqrt{\dfrac{\hat{p}\hat{q}}{n}}.

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