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You may need to use the appropriate appendix table or technology to answer this question. The data be ow give the adjusted gross income x

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You may need to use the appropriate appendix table or technology to answer this question. The data be ow give the adjusted gross income x and the amount of itemized deductions taken by taxpayers y. Data were reported in thousands of dollars. Adjusted Gross Income Itemized Deductions ($1,0009) (s1,ooos) 22 9.6 27 9.6 32 10.1 48 11.1 65 11.5 85 17.7 120 25.5 With the estimated regression equation )7 = 4.51 + 0.16X, the point estimate of a reasonable level of total itemized deductions for a taxpayer with an adjusted gross income of $47,500 is $12,110. (a) Develop a 95% condence interval for the mean amount of total itemized deductions (in thousands of dollars) for all taxpayers with an adjusted gross income of $47,500. (Round your answers to two decimal places.) (b) Develop a 95% prediction interval estimate for the amount of total itemized deductions (in thousands of dollars) for a particular taxpayer with an adjusted gross income of $47,500. (Round your answers to two decimal places.) (c) If the particular taxpayer referred to in part (b) claimed total itemized deductions of $21,000, would the [RS agent's request for an audit appear to be justified? 0 Since the predicted amount of itemized deductions is significantly greater than the actual claimed itemized deductions, the agent's request for an audit does not appear to be justified. ' ince the predicted amount of itemized deductions is significantly greater than the actual claimed itemized deductions, the agent's request for an audit appears to be justified. 0 Since the predicted amount of itemized deductions is roughly the same as the actual claimed itemized deductions, the agent's request for an audit appears to be justied. 0 Since the predicted amount of itemized deductions is significantly less than the actual claimed itemized deductions, the agent's request for an audit appears to be justied. 0 Since the predicted amount of itemized deductions is roughly the same as the actual claimed itemized deductions, the agent's request for an audit does not appear to be justified.

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