Question

The IRS reports that the mean federal income tax paid in the year 2007 was $7908. Assume that the standard deviation is $5000. The IRS plans to draw a sample of 1000 tax returns to study the effect of a new tax law. Which is more likely to happen: For the sample mean to be less than $7500 or for an individual to pay a tax less than $7500

Answer 1

Mean is less than $7500

Step-by-step explanation:

From the calculation, the p-value is less than 0.0049.

Find attached of the calculation