Reference no: EM132422099

Problem: Individuals filing tax returns prior to March 31 received an average refund of $1056. Consider the population of "last-minute" filers who mail their tax return during the last five days of the income tax period (typically April 10 to April 15). A researcher suggests that a reason individuals wait until the last five days is that on average these individuals receive lower refunds than do early filers.

Required:

Question 1: Develop appropriate hypotheses such that rejection of H0 will support the researcher's contention.

Question 2: For a sample of 400 individuals who filed a tax return between April 10 and 15, the sample mean refund was $910. Based on prior experience a population standard deviation of σ = $1600 may be assumed. What is the p-value? c. At α = .05, what is your conclusion?