Question

A random telephone survey of 1021 adults (aged 18 and older) was conducted by Opinion Research Corporation on behalf of CompleteTax, an online tax preparation and e-filing service. The survey results showed that 684 of those surveyed planned to file their taxes electronically.

a. Develop a descriptive statistic that can be used to estimate the percentage of all taxpayers who file electronically.
b. The survey reported that the most frequently used method for preparing the tax return was to hire an accountant or professional tax preparer. If 60% of the people surveyed had their tax return prepared this way, how many people used an accountant or profes-sional tax preparer

Answer 1

a) 67% of filers surveyed plans to file their taxes electronically.

b) 613 people will use the professionals to prepare their taxes.

Explanation:

Given that;

survey shows 684 of 1021 people would most likely file electronically.

a)

to estimate the percentage of all taxpayers who file electronically, we say;

(684 / 1021) * 100% = 0.6699 = 0.67

therefore 67% of filers surveyed plans to file their taxes electronically.

b)

Given that 60% ( 0.6 ) said they would us professionals, now to find how many people did it this way, we say;

( 60 / 100) * 1021 = 612.6 = 613 (we are talking about number of person)

so 613 people will use the professionals to prepare their taxes.