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Data given below are on the adjusted gross income and the amount of itemized deductions taken by taxpayers. Data were reported in thousands of

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Data given below are on the adjusted gross income and the amount of itemized deductions taken by taxpayers. Data were reported in thousands of dollars. With the estimated regression equation = 4.68 +0.16x, 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. Click on the datafile to reference the data. Excel File: data14-37.xlsx Adjusted Gross Income ($1000s) 27 Reasonable Amount of Itemized Deductions ($1000s) 9.6 IT 120 Use the estimated regression coefficients rounded to 2 decimals in your calculations. Round all intermediate calculations to 2 decimals. 9.6 10.1 11.1 13.5 17.7 25.5 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 (to 2 decimals). thousand to $ = thousand 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 (to 2 decimals). $ thousand to $ thousand 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? Select your answer - , it is -Select your answer than anticipated. 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 (to the nearest whole number). Any deductions exceeding the $ upper limit could suggest an audit.

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