Question
Pay your taxes: Among all the state income tax forms filed in a particular state, the mean income tax paid was =$2000and the standard deviation
Pay your taxes: Among all the state income tax forms filed in a particular state, the mean income tax paid was =$2000and the standard deviation was =$500. As part of a study of the impact of a new tax law, a sample of 80 income tax returns is examined. Would it be unusual for the sample mean of these 80 returns to be greater than $2150?
First calculate the probability P(X>2150). We must use the Central Limit Theorem here. Explain why the Central Limit Theorem applies to this probability. Lastly, would this event be considered unusual? Why or why not?
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