Question: High-income earners argue that they already are paying enough taxes. To test this claim, the Internal Revenue Service takes a random sample of 500 high-income and 500 low-income taxpayers and from their 2004 income tax forms, records their reported total taxable income and the amount of taxes they paid. A "percentage of income paid in taxes" is calculated for each individual (e.g., if an individual’s annual income was $200,000 and they paid $50,000 in taxes, then the "percentage of income paid in taxes" for that individual is 25.0).

State the null and research hypotheses. ( 2 points )

Which statistical procedure should be used to determine whether the high-income earners are paying a larger percentage of taxes than low-income earners? ( 2 points )

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