Who wins disputed cases whenever there is a change made to the tax laws, the taxpayer or the Internal Revenue Service (IRS)? The latest trend indicates that the burden of proof in all court cases has shifted from taxpayers to the IRS, which tax experts predict could set off more intrusive questioning. Of the accountants, lawyers, and other tax professionals surveyed by RIA Group, a tax-information publisher, 55% expect at least a slight increase in taxpayer wins. Suppose samples of 175 accountants and 165 lawyers were asked, “Do you expect taxpayers to win more court cases because of the new burden of proof rules?” Of those surveyed, 101 accountants replied “yes” and 84 lawyers said “yes.” Do the two expert groups differ in their opinions? Use a 0.01 level of significance to answer the question.
a. Solve using the p-value approach.
b. Solve using the classical approach.

  • CreatedAugust 28, 2015
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