CENGAGENOW FOR ANDERSON/SWEENEY/WILLIAM
13th Edition
ISBN: 9781337094399
Author: Cochran
Publisher: IACCENGAGE
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Chapter 14.6, Problem 37E
In exercise 13, data were given on the adjusted gross income x and the amount of itemized deductions taken by taxpayers. Data were reported in thousands of dollars. With the estimated regression equation ŷ = 4.68 + .16x, the point estimate of a reasonable level of total itemized deductions for a taxpayer with an adjusted gross income of $52,500 is $13,080.
- a. Develop a 95% confidence interval for the
mean amount of total itemized deductions for all taxpayers with an adjusted gross income of $52,500. - b. Develop a 95% prediction
interval estimate for the amount of total itemized deductions for a particular taxpayer with an adjusted gross income of $52,500. - c. If the particular taxpayer referred to in part (b) claimed total itemized deductions of $20,400, would the IRS agent’s request for an audit appear to be justified?
- d. Use your answer to part (b) to give the IRS agent a guideline as to the amount of total itemized deductions a taxpayer with an adjusted gross income of $52,500 should claim before an audit is recommended.
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Click here for the Excel Data File
(a) Using the sample size of 50 people, calculate the calc and p-value in the table given below. (Negative values should be indicated
by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Round your answers to 4 decimal places.)
Predictor
Intercept
AgeMed
Bankrupt
FedSpend
HSGrad%
Answer is complete but not entirely correct.
*calc
5.2526
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1.4101✔
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4,198.5808
-27.3540
17.4893
-0.0124
-29.0314
SE
799.3395
12.5687
12.4033
0.0176
7.1268
-0.7045
-4.0736
p-value
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0.0348
0.2935
0.4848
0.0002
Chapter 14 Solutions
CENGAGENOW FOR ANDERSON/SWEENEY/WILLIAM
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