Hypothesis testing-proportion of tax payers

Reference no: EM13110015

It has been reported that 80% of taxpayers who are audited by the Internal Revenue Service end up paying more money in taxes. Assume that auditors are randomly assigned to cases, and that one of the ways the IRS oversees its auditors is to monitor the percentage of cases that result in the taxpayer paying more taxes. If a sample of 400 cases handled by an individual auditor has 77.0% of those she audited paying more taxes , is there reason to believe her overall "pay more" percentage might be some value other than 80%? Use the 0.10 level of significance in reaching a conclusion. Determine and interpret the p-value for the test.

Reference no: EM13110015

Questions Cloud

Testing of mean-daily coffee consumption : The International Coffee Association has reported the mean daily coffee consumption for U.S. residents as 1.65 cups. Assume that a sample of 38 people from a North Carolina city consumed a mean of 1.84 cups of coffee per day

How innovation communities promote an open system : How do innovation communities promote an open System. how would the use of innovation communitieshelp companies to learn from both success and failure.

Find probability companies give employees four week vacation : Determine the probability that among 6 companies surveyed at random, number that provide employees 4 weeks of vacation after 15 years of employment.

Why researchers have identified proteins called cohesins : During mitosis it is important for sister chromatids to stick together (called "cohesion") during some stages and then separate. Researchers have identified proteins called "cohesins" that are involved in sister chromatid cohesion. If you wanted t..

Hypothesis testing-proportion of tax payers : It has been reported that 80% of taxpayers who are audited by the Internal Revenue Service end up paying more money in taxes. Assume that auditors are randomly assigned to cases, and that one of the ways the IRS oversees its auditors is to monitor..

Determine the range of annual production : A firm plans to begin production of a new small appliance. The manager must decide whether to purchase the motors for the appliance from a vendor for $7 each or to produce them in-house.

How much chicken will be held in the 2 family sized boxes : You are a manufacturer of boxes used for take out Chinese food. A supplier comes to you and asks you for help in solving his problems. When people order food in the family size.

Compute average utilization of the employee : Assume a drive-up window at a fast food restaurant. The exact interarrival time and service time distributions are not known, but the average and std deviation has been measured.

One-tail and two-tail hypothesis test : You own a Pepsi bottling plant, and you are concerned about filling the bottles to the correct level. Should you conduct a one-tailed or two-tailed hypothesis test? Explain.

User Account

All Pages