For the year 2010, 33% of taxpayers with adjusted gross incomes between $30,000 and $60,000 itemized deductions on their federal income tax return (The Wall Street Journal, October 25, 2012). The mean amount of deductions for this population of taxpayers was $16,642. Assume the standard deviation is σ = $2,400.
a. What is the probability that a sample of taxpayers from this income group who have itemized deductions will show a sample mean within $200 of the population mean for each of the following sample sizes: 30, 50, 100, and 400?
b. What is the advantage of a larger sample size when attempting to estimate the population mean?

  • CreatedFebruary 16, 2015
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