Question
In: Statistics and Probability
A recent study on state income tax payments found that the average person paid $7,500 each...
A recent study on state income tax payments found that the average person paid $7,500 each year with a standard deviation of $250.20. After multiple propositions by local experts, a change was implemented to reduce this tax burden. Suppose a random sample of 240 people was taken after the proposed changes and these individuals exhibited a mean tax payment of $7,425.
- What would a 95% confidence interval for the population mean be? [Show your code in “R Code” section. Show the answer in “Answer” section. Leave “Comments” section blank.]
- What would it suggest with regards to whether they have properly reduced the tax burden? Why? [Leave “R Code” and “Answer” sections blank. Include the phrase “reduced” or “did not reduce” along with a justification in a few sentences in “Comments” section.]
Solutions
Expert Solution
The detailed R code and explanation are given below
We see that the 95% confidence interval is (7386.2392, 7463.7608) which is well below the previous mean of 7500, hence we can conclude that they have properly reduced the tax burden
orchestra answered 1 year agoRelated Solutions
Federal income tax allows a deduction for any state income tax paid during the year. In...
Federal income tax allows a deduction for any state income tax
paid during the year. In addition, the state of Alabama allows a
deduction from its state income tax for any federal income tax paid
during the year.
The federal corporate income tax is equivalent to a flat rate of
34% of the taxable federal income and the Alabama rate is 5% of the
taxable state income. Both the federal and Alabama taxable income
for a certain corporation are $1,000,000...
A recent study stated that if a person chewed gum, the average number of sticks of...
A recent study stated that if a person chewed gum, the average
number of sticks of gum he or she chewed daily was 8. Researcher
believes the number of sticks is greater. He selected a random
sample of 36 gum chewers and found the mean number of sticks of gum
chewed per day was 9. The standard deviation of the population is
1. At α = 0.05 level of significance test the claim that the number
of sticks of gum...
A recent study stated that if a person chewed gum, the average number of sticks of...
A recent study stated that if a person chewed gum, the average
number of sticks of gum he or she chewed
daily was 8. To test the claim, a researcher selected a random
sample of 36 gum chewers and found the
mean number of sticks of gum chewed per day was 9. The standard
deviation of the sample was 1. Use the level of significance of
0.05
, test the claim that the number of sticks of gum a person...
3. A recent study showed that the average number of sticks of gum a person chews...
3. A recent study showed that the average number of sticks of
gum a person chews in a week is 15. A college student believes that
the guys in his dormitory chew less gum in a week. He conducts a
study and samples 14 of the guys in his dorm and finds that on
average they chew 13 sticks of gum in a week with a standard
deviation of 3.6. Test the college student's claim at αα=0.01.
Since the level...
how do state estate tax payments or state death tax payments affect the estate tax return
how do state estate tax payments or state death tax
payments affect the estate tax return
A recent study found that the average credit score for employed American adults is 702.5. A...
A recent study found that the average credit score for employed
American adults is 702.5. A credit analyst wonders if this number
is actually different for working millenials. In a random sample of
15 employed millenials, their sample mean credit score was 715.2
with a sample standard deviation of 83. Assume that credit scores
of the population are normally distributed.
(a) Conduct the appropriate test to determine if millenials have
a different credit score at the α = 0.05 level...
Federal income tax allows a deduction for any state tax paid during the year. In addition,...
Federal income tax allows a deduction for any state tax paid
during the year. In addition, the state of Alabama allows a
deduction from its state income tax for any federal tax paid during
the year. The federal corporate income tax is equivalent to a flat
rate of 34% and the Alabama state tax rate is a flat 5%.
Both the Alabama and the federal taxable income
for a corporation is $1,000,000 before either tax is paid.
Because each tax...
A study found that highway drivers in one state traveled at an average speed of 59.7...
A study found that highway drivers in one state traveled at an
average speed of 59.7 miles per hour (MPH). Assume the population
standard deviation is 6. MPH. Complete parts a through d below.
a. What is the probability that a sample of 30 of the drivers
will have a sample mean less than 58 MPH? (Round to four decimal
places as needed.)
b. What is the probability that a sample of 45 of the drivers
will have a sample...
A recent study found that children who watched a cartoon with food advertising ate, on average,...
A recent study found that children who watched a cartoon with
food advertising ate, on average, 28.6 grams of crackers as
compared to an average of 18.8 grams of crackers for children who
watched a cartoon without food advertising. Suppose that there were
61 children in each group, and the sample standard deviation for
those children who watched the food ad was 8.7 grams and the sample
standard deviation for those children who did not watch the food ad
was...
the internal revenue service reports that the mean federal income tax paid in a recent year...
the
internal revenue service reports that the mean federal income tax
paid in a recent year was $8040. Assume that the standard deviation
is $5000. The irs plans to draw a sample of 1000 tax returns to
study the effect of a new law.
A) what is the probability that the sample mean tax is less
than $8000?
B) what is the probability that the sample mean tax is between
$7600 & $7900?
C) Find the 40th percentile of the...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- How do you represent 5.1 (5 + 1/10) in binary? I know that it is 0101....
- More and more adults are considering commuting to work by bicycle rather than car, but few...
- Please answer these questions Data Processing and Analysis using python. Thank you In statistics, an outlier...
- Write a function file that accepts each of the four vectors as inputs. The function file...
- Kant says that to act morally is to act out of duty. How does this differ...
- Suppose you are trying to determine the capacity (in gallons) of the gas tank needed on...
- List the arithmetic operators used in BASIC and state their priorities of execution in a statement....
ADVERTISEMENT