STAT TECH IN BUSINESS & ECON LL\AC
18th Edition
ISBN: 9781264720545
Author: Lind
Publisher: MCG
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Chapter 16, Problem 14E
To determine
State whether it is reasonable to conclude that it takes less time for the customers who applies for the 30-years fixed-rate mortgage.
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According to the IRS, individuals filing federal income tax returns prior to March 31 received an average refund of $1056 in 2018. Consider the population of “last-minute” filers who mail their tax return during the last five days of the income tax period (typically April 10 to April 15).
A researcher suggests that a reason individuals wait until the last five days is that on average these individuals receive lower refunds than do early filers. For a sample of 400 individuals who filed a tax return between April 10 and 15, the sample mean refund was $910. Based on prior experience, a population standard deviation of σ = $1,600 may be assumed.
Test the researcher's assertion using the critical value approach. Use α = 0.05
(Please include all the 7 steps in hypothesis testing)
Steps in hypothesis testing
p-value Approach
Develop the null and alternative hypothesis
Specify the level of significance, α
Choose the test statistic (z or t)
Calculate the test statistic
Use the value of the…
The amount of income spent on housing is an important component of the cost of living. The total costs of housing for homeowners might include mortgage payments, property taxes, and utility costs (water, heat, electricity). An economist selected a sample of 20 homeowners in New England and then calculated these total housing costs as a percent of monthly income, 5 years ago and now. The information is reported below. Is it reasonable to conclude the percent is less now than 5 years ago?
Homeowner
Five Years Ago
Now
Homeowner
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Now
1
17
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10
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11
35
%
32
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2
20
39
12
16
32
3
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37
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23
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43
27
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44
40
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41
16
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42
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45
24
17
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22
8
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26
18
29
19
9
49
28
19
39
35
10
49…
According to the IRS, individuals filing federal income tax returns prior to March 31 received an average refund of $1,074 in 2018. Consider the population of
"last-minute" filers who mail their tax return during the last five days of the income tax period (typically April 10 to April 15).
a. A researcher suggests that a reason individuals wait until the last five days is that on average these individuals receive lower refunds than do early filers.
Develop appropriate hypotheses such that rejection of Ho will support the researcher's contention.
Но: p is
- Select your answer -
Ha:
:µ is
- Select your answer -
b. For a sample of 400 individuals who filed a tax return between April 10 and 15, the sample mean refund was $910. Based on prior experience a population
standard
eviation of o = $1,600 may be assumed. What
the p-value (to 4 decimals)?
c. Using a =
0.05, can you conclude that the population mean refund for "last minute" filers is less than the population mean refund for early…
Chapter 16 Solutions
STAT TECH IN BUSINESS & ECON LL\AC
Ch. 16 - Prob. 1SRCh. 16 - Prob. 1ECh. 16 - Prob. 2ECh. 16 - Calorie Watchers has low-calorie breakfasts,...Ch. 16 - Prob. 4ECh. 16 - Prob. 2SRCh. 16 - Prob. 5ECh. 16 - Prob. 6ECh. 16 - Prob. 3SRCh. 16 - Prob. 7E
Ch. 16 - Prob. 8ECh. 16 - Prob. 9ECh. 16 - Prob. 10ECh. 16 - Prob. 4SRCh. 16 - Prob. 11ECh. 16 - Prob. 12ECh. 16 - Prob. 13ECh. 16 - Prob. 14ECh. 16 - Prob. 5SRCh. 16 - Prob. 15ECh. 16 - Prob. 16ECh. 16 - Prob. 17ECh. 16 - Prob. 18ECh. 16 - Prob. 19ECh. 16 - Prob. 20ECh. 16 - Prob. 6SRCh. 16 - Prob. 21ECh. 16 - Prob. 22ECh. 16 - Prob. 23ECh. 16 - Prob. 24ECh. 16 - Prob. 25CECh. 16 - Prob. 26CECh. 16 - Prob. 27CECh. 16 - Prob. 28CECh. 16 - Prob. 29CECh. 16 - Prob. 30CECh. 16 - Prob. 31CECh. 16 - Prob. 32CECh. 16 - Prob. 33CECh. 16 - Prob. 34CECh. 16 - Prob. 35CECh. 16 - Professor Bert Forman believes the students who...Ch. 16 - Prob. 37DACh. 16 - Prob. 38DACh. 16 - Prob. 39DACh. 16 - Prob. 1PCh. 16 - The manufacturer of childrens raincoats wants to...Ch. 16 - Prob. 3PCh. 16 - Prob. 4PCh. 16 - Prob. 1CCh. 16 - B. Thomas Testing Labs John Thomas, the owner of...Ch. 16 - Prob. 1.1PTCh. 16 - Prob. 1.2PTCh. 16 - Prob. 1.3PTCh. 16 - Prob. 1.4PTCh. 16 - Prob. 1.5PTCh. 16 - Prob. 1.6PTCh. 16 - Prob. 1.7PTCh. 16 - Prob. 1.8PTCh. 16 - Prob. 1.9PTCh. 16 - Prob. 1.10PTCh. 16 - Prob. 2.1PTCh. 16 - Prob. 2.2PTCh. 16 - Prob. 2.3PTCh. 16 - Prob. 2.4PT
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- According to the IRS, individuals filing federal income tax returns prior to March 31 received an average refund of $1,072 in 2018. Consider the population of "last-minute" filers who mail their tax return during the last five days of the income tax period (typically April 10 to April 15). a. A researcher suggests that a reason individuals wait until the last five days is that on average these individuals receive lower refunds than do early filers. Develop appropriate hypotheses such that rejection of Ho will support the researcher's contention. Ho: u is less than or equal to 1,072 Ha: H is Select your answer- b. For a sample of 400 individuals who filed a tax return between April 10 and 15, the sample mean refund was $920. Based on prior experience a population standard deviation of o = $1,600 may be assumed. What is the p-value (to 4 decimals)? c. Using a = 0.05, can you conclude that the population mean refund for "last minute" filers is less than the population mean refund for…arrow_forwardAccording to the IRS, individuals filing federal income tax returns prior to March 31 received an average refund of $1,089 in 2018. Consider the population of "last-minute" filers who mail their tax return during the last five days of the income tax period (typically April 10 to April 15). a. A researcher suggests that a reason individuals wait until the last five days is that on average these individuals receive lower refunds than do early filers. Develop appropriate hypotheses such that rejection of Ho will support the researcher's contention. Ho: is greater than or equal to 1,089 v Ha: is less than 1,089 ✔ b. For a sample of 400 individuals who filed a tax return between April 10 and 15, the sample mean refund was $910. Based on prior experience a population standard deviation of o= $1,800 may be assumed. What is the p-value (to 4 decimals)? * 0.0173 c. Using a = 0.05, can you conclude that the population mean refund for "last minute" filers is less than the population mean refund…arrow_forwardSeveral insurance adjusters were concerned about the unusually high estimates from Fosbert's U-Bet Repair Station. They obtained the following data: Car Number 1 3. 4 6. 8. Fosbert's Estimate 2.1 4.5 6.3 3.0 1.2 5.4 7.3 9.3 Nickles Estimate 2.0 3.8 5.9 2.8 1.3 5.0 6.5 8.6 Estimates are in hundreds of dollars. At a .005 level of significance determine whether the adjusters can conclude that Fosbert's is significantly higher than Nickles'. State hypotheses, P-value, and conclusion. 2.arrow_forward
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