1. Individuals filing federal income tax returns prior to March 31 received an average refund of $1056. Consider the population of last minute filers who mail their tax return “late" in April. A researcher suggests that a reason individuals wait until the last minute is that on average these individuals receive lower refunds than do early filers. For a sample of 400 individuals who filed a tax return in April, the sample mean refund was $910. Based on prior experience a population standard deviation of o = $1600 may be assumed. b. At a = 0.05, test your hypothesis. c. What is your conclusion? Explain in the context of the problem.

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A:

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