Purchase Solution

Hypothesis testing : Proportion

Not what you're looking for?

Ask Custom Question

It has been reported that 80% of taxpayers who are audited by the IRS end up paying more money in taxes. Assume that the auditors are randomly assigned cases and that one of the ways the IRS oversees its auditors is to monitor the percentage of cases that result in the tax payer paying more in taxes. A sample of 400 cases handles by an individual auditor has 77% or those she audited paying more taxes.

a. Doe the sample data provide evidence to conclude that the auditor's over "pay more" percentage might be some value other than 80%? Use the .10 level of significance in reaching this conclusion. Use the 5-step hypothesis testing procedure.

1. Formulate the null and alternative hypotheses.

2. Determine the criterion for rejection or non-rejection of the null hypothesis.

3. Calculate the test statistic.

4. Compare the test statistic to the rejection region and make a judgment about the null and alternative hypotheses.

5. Interpret the statistical decision in terms of the problem.

6. Compute the observed p-value in the hypothesis test and interpret this value. What does this mean?

Purchase this Solution
Solution Summary

Step by step method for computing test statistic Z test for proportion is given in the answer.

Purchase this Solution
Free BrainMass Quizzes
Measures of Central Tendency

This quiz evaluates the students understanding of the measures of central tendency seen in statistics. This quiz is specifically designed to incorporate the measures of central tendency as they relate to psychological research.

Know Your Statistical Concepts

Each question is a choice-summary multiple choice question that presents you with a statistical concept and then 4 numbered statements. You must decide which (if any) of the numbered statements is/are true as they relate to the statistical concept.

Measures of Central Tendency

Tests knowledge of the three main measures of central tendency, including some simple calculation questions.

Terms and Definitions for Statistics

This quiz covers basic terms and definitions of statistics.

View More Free Quizzes
Related BrainMass Solutions

  • Test of hypothesis for proportions, standard deviation

    The hypothesis that we are testing is that 50% or more voters prefer Democratic candidate Data Hypthesized proportion= 50% Sample proportion= 48% Sample size= 1068 Significance level= 0.05

  • Hypothesis Testing: Unemployment Levels

    530183 Hypothesis Testing: Unemployment Levels Federal administration stated that unemployment level in US is 8.6% (population proportion = 0.086).

  • The Purposes of a Hypothesis Test

    If you are testing the hypothesis H0: population proportion is .5 H1: population proportion is not .5, and you get .52 for the sample proportion, can you reject the null hypothesis? Why or why not?

  • Testing of population proportion.

    106247 Testing of population proportion. Identify the null hypothesis , alternative hypothesis, test statistic, p-value or critical value(s), conclusion about the null hypothesis, and final conclusion that addresses the original claim.

  • Hypothesis Testing, Null and Alternate Hypothesis and Two-Tailed Hypothesis Tests

    59563 Hypothesis Testing, Null and Alternate Hypothesis and Two-Tailed Hypothesis Tests 5) ESPN reported in sample of 1000 homes the proportion of people who watched the Texas v. Ohio State college football game this weekend was .6.

  • Hypothesis Testing : Proportion and Solutions in Research Issue

    135445 Hypothesis Testing : Proportion and Solutions in Research Issue A comparison between products manufactured in China VS Mexico and their perceived quality to the US consumer based on manufacturing location.

  • Hypothesis testing :Proportion

    For the present problem, the p value is 0.000730, which indicates that proportion is statistically significantly different from 0.50 This shows how to set up and solve an example of a hypothesis testing problem.

  • Testing of Hypothesis

    255679 Testing of Hypothesis for Proportion 4. A survey was conducted to compare the proportion of male and female adults, 25 years or older, who have completed four or more years of college.

  • Confidence Interval & Hypothesis Testing: Cure Rate

    576956 Confidence Interval & Hypothesis Testing: Cure Rate A standard surgery was performed on 50 patients with severe sinus infection, and 36 were cured. a) Find a 95% confidence interval for the population cure rate or proportion.

  • Hypothesis testing :Proportion

    156253 Hypothesis testing :Proportion In a study of check out scanners, 5 of 675 items were found to be overcharges, test at the 0.05 significance level, the claim that with scanners, 5% of sales are overcharges. Determine the test statistic.

View More Related Solutions