Answer to Question #40636 in Statistics and Probability for Mitch arlian

Question

Each year people who have income file income tax reports with the government. In some instances people seek advice from accountants and financial advisors regarding their income tax situations. This advice is meant to lower the percentage of taxes paid to the government each year. A random sample of people who filed tax reports resulted in the data in the table at the right. Does this data indicate that people should seek tax advice from an accountant or financial advisor? Test an appropriate hypothesis and state your conclusion.

Answer 1

Dear visitor
Unfortunately, the statement of your question is a bit confusing. We do not know sufficient information to solve this problem. In this problem we consider testing H0: p=p0 versus H1:p<p0. The test statistic is z=(p-p0)/Sqrt(p0(1-p0)/n). If we set the significance level alpha=0.05, the rejection region is R:z<=-1.65 (it means if z<=-1.65 the we reject H0). Please, give us the details so we could help you.