## Related questions with answers

**Who prepares your tax return?** Refer to the Behavioral Research and Accounting (January 2015) study on income tax compliance, Exercise $5.50$ (p. 297). Recall that in a sample of 270 U.S. adult workers, the researchers found that $37 \%$ prepare their own tax return. Suppose an IRS tax consultant claims that $50 \%$ of all U.S. adult workers prepare their own tax return. Make an inference about this claim.

Solution

VerifiedGiven:

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

We need to need to determine whether it is likely that $p=50\%=0.5$, which is the case when the confidence interval contains $p=0.5$.

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

## Create a free account to view solutions

## Create a free account to view solutions

## Recommended textbook solutions

#### Statistics for Business and Economics

13th Edition•ISBN: 9780134446332 (1 more)James T. McClave, P. George Benson, Terry T Sincich#### Statistics for Business and Economics

12th Edition•ISBN: 9781133274537 (12 more)David R. Anderson, Dennis J. Sweeney, James J Cochran, Jeffrey D. Camm, Thomas A. Williams#### Essentials of Modern Business Statistics with Microsoft Office Excel

7th Edition•ISBN: 9781337298292David Anderson, Dennis J. Sweeney, James J Cochran, Jeffrey D. Camm, Thomas A. Williams#### Statistics for Business and Economics

14th Edition•ISBN: 9781337901062 (1 more)David R. Anderson, Dennis J. Sweeney, James J Cochran, Jeffrey D. Camm, Thomas A. Williams## More related questions

1/4

1/7