assignment #6 - Alicia Deal CJ 685 Assignment#6 3 The IRS...

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Alicia Deal CJ 685 10-07-04 Assignment #6 3.) The IRS has claimed that the mean number of times the average US citizen has cheated on taxes in the last 10 years is 4.6 times. Assume that this is your population value. We believe that the actual population mean (u) of the number of times individuals cheat on their taxes is higher than this. We collect a random sample of 64 tax paying citizens and find the following sample statistics: X (sample mean)=6.3, s=1.9. Perform all of the procedures necessary for conducting a hypothesis test based on our assumption. Set your alpha level at .01. what do you conclude? 1. H 0 : u= 4.6 H 1 : u>4.6 2. normal distribution; one tailed; the sample size is larger than 50 therefore, must use z test. 3. alpha level=.01 critical region: 2.33; therefore, if our obtained value of z is greater than or equal to 2.33, then we must reject the null. 4. z= (6.3-4.6)/ (1.9/ square root of 64)= 1.7/ (1.9/8)= 1.7/.2375=7.16 7.16>2.33 5. We must reject the null since 7.16 is greater than 2.33 and falls in the critical region. In other words, we are 99% confident that individuals cheat on their taxes 7.16 times, not 4.6 times.
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