Chapter 4.1, Problem 11E

To the Internal Revenue Service, the reasonableness of total itemized deductions depends on the taxpayer’s adjusted gross income. Large deductions, which include charity and medical deductions, are more reasonable for taxpayers with large adjusted gross incomes. If a taxpayer claims larger than average itemized deductions for a given level of income, the chances of an IRS audit are increased. Data (in thousands of dollars) on adjusted gross income and the average or reasonable amount of itemized deductions follow. Adjusted Gross Income ($1000s) Reasonable Amount ofItemized Deductions ($1000s) 22   9.6   27   9.6   32   10.1   48   11.1   65   13.5   85   17.7   120   25.5 Compute b1 and b0 (to 4 decimals).b1  b0  Complete the estimated regression equation (to 2 decimals). =   +  x Predict a reasonable level of total itemized deductions for a taxpayer with an adjusted gross income of $52.5 thousand (to 2 decimals).  thousand dollarsWhat is the value, in dollars, of…

Answer questions 8.1.10, 8.1.11and 8.1.12 respectively

7.2.10 Researchers in the Hopkins Forest also count the number of maple trees (genus acer) in plots throughout the forest. The following is a histogram of the number of live maples in 1002 plots sampled over the past 20 years. The average number of maples per plot was 19.86 trees with a standard deviation of 23.65 trees. a. If we took the mean of a sample of eight plots, what would be the standard error of the mean? b. Using the central limit theorem, what is the probability that the mean of the eight would be within 1 standard error of the mean? c. Why might you think that the probability that you calculated in (b) might not be very accurate?     2. A normal population has mean 100 and variance 25. How large must the random sample be if you want the standard error of the sample average to be 1.5?