Question

In: Statistics and Probability

A survey of CPAs across the United States found the average net income for sole proprietor...

A survey of CPAs across the United States found the average net income for sole proprietor CPAs is $114,300. Because this survey is now more than 5 years old, an accounting researcher wants to test this figure by taking a random sample of 36 sole proprietor accountants in the United States to determine whether the average net income has increased. Only 500 sole proprietorships practice in the US. The sample of 36 sole proprietor accountants had a mean of $119,000 with a standard deviation of $12,000. Construct a 99% confidence interval for the population mean net income for sole proprietor CPAs. Show your work! Formula(s), substitutions, answers! Please round your z or t value to 3 decimal places, and your final answers to whole numbers. Does your confidence interval provide evidence that the average net income of sole proprietor CPAS has increased? Yes No Defend your answer.

Solutions

Expert Solution

We have given the average net income for sole proprietor CPAs is $114,300 and researcher wants to test this figure by taking a random sample of 36 sole proprietor accountants in the United States to determine whether the average net income has increased.

orchestra answered 1 year ago
Next > < Previous

Related Solutions

A survey of CPAs across the United States found the average net income for sole proprietor...
A survey of CPAs across the United States found the average net income for sole proprietor CPAs is $114,300. Because this survey is now more than 5 years old, an accounting researcher wants to test this figure by taking a random sample of 36 sole proprietor accountants in the United States to determine whether the average net income has increased. Only 500 sole proprietorships practice in the US. The sample of 36 sole proprietor accountants had a mean of $119,000...
A group conducted a survey of 13,000 brides and grooms married in the United States and found that the average cost of a wedding is $25,858.
  A group conducted a survey of 13,000 brides and grooms married in the United States and found that the average cost of a wedding is $25,858. Assume that the cost of a wedding is normally distributed with a mean of $25,858 and a standard deviation of $5,700. (a) What is the probability that a wedding costs less than $18,000? (Round your answer to four decimal places.) (b) What is the probability that a wedding costs between $18,000 and $32,000?...
A random survey of enrollment at community colleges across the United States yielded the following figures:...
A random survey of enrollment at community colleges across the United States yielded the following figures: 7681; 3200; 17500; 9200; 7380; 18314; 6557; 13713;. Assume the underlying population is normal. Construct a 95% confidence interval for the population mean enrollment at community colleges in the United States. What is the lower bound of the confidence interval? Question 1 options: 5880 10443 15006 Question 2 (1 point) What is the sample mean? Question 2 options: 5458 5880 10443 Question 3 (1...
A random survey of enrollment at 35 community colleges across the United States yielded the following...
A random survey of enrollment at 35 community colleges across the United States yielded the following figures: 6,415; 1,549; 2,107; 9,348; 21,829; 4,300; 5,943; 5,724; 2,824; 2,043; 5,483; 5,199; 5,855; 2,749; 10,010; 6,359; 27,002; 9,416; 7,679; 3,201; 17,502; 9,202; 7,380; 18,313; 6,558; 13,714; 17,769; 7,491; 2,769; 2,862; 1,262; 7,283; 28,163; 5,082; 11,624. Assume the underlying population is normal. Part (a) Find the following. (Round your answers to the nearest whole number.)(i)     x =   sx =   n = 35 n −...
Frank is the sole proprietor of a small business.  In 2019, the business income for purposes of...
Frank is the sole proprietor of a small business.  In 2019, the business income for purposes of computing the Section 179 deduction is $350,000.  During the year, the following assets were placed in service.  (Assume no bonus depreciation) Asset # 1 – Machinery  - $1,790,000 Asset # 2 – Equipment - $365,000 Asset # 3 – Computer - $96,000 Asset # 4 – Equipment - $468,000 3a) Calculate the amount of the phase out limitation? 3b) What is the maximum amount of Section 179...
Rachel is an engineer who practices as a sole proprietor. This year, Rachel had net business...
Rachel is an engineer who practices as a sole proprietor. This year, Rachel had net business income of $500,000 from her business. Assume that Rachel pays $20,000 wages to her employees, she has $500,000 of property (unadjusted basis of equipment she purchased last year), has no capital gains, and her taxable income before the deduction for qualified business income is $380,000. Calculate Rachel's deduction for qualified business income.
1. a) Suppose average monthly sales for retail locations across the United States are approximately normally...
1. a) Suppose average monthly sales for retail locations across the United States are approximately normally distributed with variance σ^2= 5200. We took a sample of size 50 and found ̄x= 12018,  Using this, conduct a hypothesis test with α= 0.05 to test the null hypothesis that the mean is 12000 vs. the alternative hypothesis that it is not. For full credit, state the null and alternative hypothesis, the test statistic, the rejection region, and your conclusion. b)Using the setup from...
1. a) Suppose average monthly sales for retail locations across the United States are approximately normally...
1. a) Suppose average monthly sales for retail locations across the United States are approximately normally distributed with variance σ^2= 5200. We took a sample of size 50 and found ̄x= 12018,  Using this, conduct a hypothesis test with α= 0.05 to test the null hypothesis that the mean is 12000 vs. the alternative hypothesis that it is not. For full credit, state the null and alternative hypothesis, the test statistic, the rejection region, and your conclusion. b)Using the setup from...
Which of the following is true of sole proprietorships in the United States? There are no...
Which of the following is true of sole proprietorships in the United States? There are no opportunity costs involved in operating such firms. They offer the owners less personal liability than the other forms of business organization. Such firms employ only one individual. They are responsible for a large portion of the total production of goods and services in the U.S. economy. They are the most important form of business organization in terms of their numbers. Taxes collected on the...
The 2003 Zagat Restaurant Survey provides food, décor, and service ratings for some of the top restaurants across the United States
The 2003 Zagat Restaurant Survey provides food, décor, and service ratings for some of the top restaurantsacross the United States. For 15 top-ranked restaurants located in Boston, the average price of a dinnerincluding, one drink and tip, was $48.60. You are leaving for a business trip to Boston and will eat dinner atthree of these restaurants. Your company will reimburse you for a maximum of $50 per dinner. Businessassociates familiar with these restaurants have told you that the meal cost...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT