a. What proportion of tax returns show a refund greater than $2,000?(use an excel function ) b. What proportion of the tax returns show that the taxpayer owes money to the government?(use an excel function) c. What proportion of the tax returns show a refund between $100 and $700?(use an excel fucntion)
Inverse Normal Distribution
The method used for finding the corresponding z-critical value in a normal distribution using the known probability is said to be an inverse normal distribution. The inverse normal distribution is a continuous probability distribution with a family of two parameters.
Mean, Median, Mode
It is a descriptive summary of a data set. It can be defined by using some of the measures. The central tendencies do not provide information regarding individual data from the dataset. However, they give a summary of the data set. The central tendency or measure of central tendency is a central or typical value for a probability distribution.
Z-Scores
A z-score is a unit of measurement used in statistics to describe the position of a raw score in terms of its distance from the mean, measured with reference to standard deviation from the mean. Z-scores are useful in statistics because they allow comparison between two scores that belong to different normal distributions.
Income tax returns one year averaged $1,332 in refunds for taxpayers. One explanation of this figure is that taxpayers would rather have the government keep back too much money during the year than owe it money at the end of the year. Suppose the average amount of tax at the end of a year is a refund of $1,332, with a standard deviation of $725. Assume that amounts owed or due on tax returns are
a. What proportion of tax returns show a refund greater than $2,000?(use an excel
b. What proportion of the tax returns show that the taxpayer owes money to the government?(use an excel function)
c. What proportion of the tax returns show a refund between $100 and $700?(use an excel fucntion)
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