Based on the sample results in Exercise 10.74, construct and interpret the 90% confidence interval for the population proportion. Is the hypothesized proportion (0.80) within the interval? Given the presence or absence of the 0.80 value within the interval, is this consistent with the findings of the hypothesis test conducted in Exercise 10.74?
It has been reported that 80% of taxpayers who are audited by the Internal Revenue Service end up paying more money in taxes. Assume that auditors are randomly assigned to cases, and that one of the ways the IRS oversees its auditors is to monitor the percentage of cases that result in the taxpayer paying more taxes.