Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A statistical program is recommended The Transactional Records Access Clearinghouse at Syracuse University reported data showing the odds of an Internal Revenue Service audit. The

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
A statistical program is recommended The Transactional Records Access Clearinghouse at Syracuse University reported data showing the odds of an Internal Revenue Service audit. The following table shows average adjusted gross income reported in dollars) and the percent of the returns that were audited for 20 selected IRS districts. District Adjusted Percent Gross Income (S) Audited Los Angeles 36,664 13 Sacramento 38,845 1.1 Atlanta 34,886 1.1 Borse 32,512 1.1 Dallos 34,531 1.0 Providence 35,995 1.0 San Jose 32,799 0.0 Cheyenne 33,826 0. Fargo 30,533 0.9 New Orleans 30.174 0.9 Onoma Chy 30,000 0.8 37,153 0.1 Pond 34,018 0.7 Phib 33,291 0. Aug 11.504 0.7 Houston 37,153 0.8 Portland 34,918 0.7 Phoenix 33,291 0.7 Augusta 31.504 0.2 Albuquerque 29,199 0.6 Greensboro 33,072 0.6 Columbia 30,859 0.5 Nashville 32,566 0.5 Buffalo 34,296 0.5 (a) Develop the estimated regression equation that could be used to predict the percent audited given the average adjusted gross income reported (in dollars) (Round your value for the intercept to three decimal places and your value for the slope to six decimal places) P- (h) At the 0.05 level of significance, determine whether the adjusted gross income (in dollars) and the percent audited are related. (Use the F test) State the null and alternative hypotheses. W 0 OH, 20 O Mo, 0 Hoo- H. *0 Hot B, 0 M. , . Find the value of the test statistic (Round your answer to two decimal places.) Find the p-value. (Round your answer to three decimal places.) D-value State your condusion Do not reject No. We conclude that the relationship between the adjusted gross income (in dollars) and the percent audited is significant Do not reject H We cannot conclude that the relationship between the adjusted gross income (in dollars) and the percent audited is significant Reject HWe conclude that the relationship between the adjusted gross income (in dollars) and the percent audited is significant Beject Hy we cannot condude that the relationship between the adjusted gross income (in dollars) and the percent audited is significant Find the p-value. (Round your answer to three decimal places.) p-value State your conclusion. Do not reject Hy we conclude that the relationship between the adjusted gross income (in dollars) and the percent audited is significant. Do not reject H. We cannot conclude that the relationship between the adjusted gross income (in dollars) and the percent audited is significant Reject Wo. We conclude that the relationship between the adjusted gross income (in dollars) and the percent audited is significant O Reject We cannot conclude that the relationship between the adjusted gross income (in dollars) and the percent audited is significant to Did the estimated regression equation provide a good fit? Explain. (Round your answer to three decimal places) Since is Soloch the estimated regression equation --Select a good nit. () the estimated regression equation developed in part(s) to calculate a 95% confidence interval for the expected percent audited for districts with an average adjust gross income of $34,000. (Round your answers to two decimal places) to Need Help

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Statements Analysis Cases From Corporate India

Authors: Sandeep Goel

1st Edition

1138663921, 9781138663923

More Books

Students also viewed these Accounting questions