Question
The Wall Street Journal reported that 33% of taxpayers with adjusted gross incomes between $30,000 and $60,000 itemized deductions on their federal income tax return.
The Wall Street Journal reported that 33% of taxpayers with adjusted gross incomes between $30,000 and $60,000 itemized deductions on their federal income tax return. The mean amount of deductions for this population of taxpayers was $16,278. Assume that the standard deviation is $2611. Use z-table.
a. What is the probability that a sample of taxpayers from this income group who have itemized deductions will show a sample mean within $199 of the population mean for each of the following sample sizes: 30,50,100, and 400? Round your answers to four decimals.
b. What is the advantage of a larger sample size when attempting to estimate the population mean? Round your answers to four decimals.
A larger sample increases the probability that the sample mean will be within a specified distance of the population mean. In this instance, the probability of being within plus or minus 199 of ranges from _______ for a sample of size 30 to ______ for a sample of size 400.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started