Because of the complex nature of the U.S.income tax system,many people have questions for the Internal Revenue Service (IRS) .Yet,an article published by the Detroit Free Press entitled "Assistance: IRS Help Centers Give the Wrong Information" discusses the propensity of IRS staff employees to give incorrect tax information to tax-payers who call with questions.Then IRS Inspector General Pamela Gardiner told a Senate subcommittee that "the IRS employees at 400 taxpayer assistance centers nationwide encountered 8.5 million taxpayers face-to-face last year.The problem: When inspector general auditors posing as taxpayers asked them to answer tax questions,the answers were right 69% of the time." Suppose an independent commission was formed to test whether the 0.69 accuracy rate is correct or whether it is actually higher or lower.The commission has randomly selected n = 180 tax returns that were completed by IRS assistance employees and found that 105 of the returns were accurately completed.
Using an α= 0.05 level,based on the sample data,what conclusion should be reached about the IRS rate of correct tax returns?
A) The z-critical values from the standard normal table for a two-tailed test with alpha = 0.05 are
And z = -1.96.Since z = -0.96 > -1.96,we do not reject the null hypothesis.Thus,based on these sample data,we believe that the accuracy rate is actually higher than the 0.69 rate quoted in the Detroit Free Press article
B) The z-critical values from the standard normal table for a two-tailed test with alpha = 0.05 are
And z = -1.96.Since z = -0.96 > -1.96,we do not reject the null hypothesis.Thus,based on these sample data,we believe that the accuracy rate is actually higher than the 0.58 rate quoted in the Detroit Free Press article
C) The z-critical values from the standard normal table for a two-tailed test with alpha = 0.05 are
And z = -1.96.Since z= -3.19 < -1.96,we reject the null hypothesis.Thus,based on these sample data,we believe that the accuracy rate is actually lower than the 0.69 rate quoted in the Detroit Free Press article.
D) The z-critical values from the standard normal table for a two-tailed test with alpha = 0.05 are
Correct Answer:
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