A research center claims that at least32% of adults in a certain country think that their...

A research center claims that at least32% of adults in a certain country think that their taxes will be audited. In a random sample of 800 adults in that country in a recent year,29%say they are concerned that their taxes will be audited. At alphaαequals=0.01,is there enough evidence to reject the center's claim?

Expert Solution

Null hypothesis

Alternative hypothesis

We have for given example,
Population proportion value is =0.32
x=232

n=800
Level of significance =   0.01
Estimate for sample proportion

Z test statistic formula for proportion

=-1.82

P value is = 0.9655........................by using normal probability table or by using Excel command NORMSDIST(-1.82)

P value is =0.9665 > 0.01

Therefore, we fail to reject H0 at

We can say that, at least 32% of adults in a certain country think that their taxes will be audited.

orchestra answered 2 years ago

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