The Greybar Tax Company believes that its clients are selected for audits at a rate substantially higher

Question:

The Greybar Tax Company believes that its clients are selected for audits at a rate substantially higher than the rate for the general population. Suppose that the Canada Revenue Agency audits 4.3% of those who earn more than $100,000, but a check of 400 randomly selected Greybar returns with earnings above $100,000 shows that 56 of them were audited. Using a 99% level of confidence, construct a confidence interval for the percentage of Greybar returns with earnings above $100,000 that are audited. Based on the result, does it appear that the high-income Greybar clients are audited at a rate that is substantially higher than the rate for the general population?
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Elementary Statistics

ISBN: 9780321225979

3rd Canadian Edition

Authors: Mario F. Triola

Question Posted: