Math Solutions

(See Steps) The National Association of Certified Public Accountants selected a sample of taxpayers with gross incomes of more than $100,000. They asked

Question: The National Association of Certified Public Accountants selected a sample of taxpayers with gross incomes of more than $100,000. They asked two major accounting films, Sheet Tax Service and Square Deal, to compute the income tax liability for each sampled taxpayer. Use the sign test and the 0.10 significance level to determine if there is a difference in the tax liability.

Taxpayer Sheet Tax Service Square Deal
Schwind 18.9 28
Gankowski 33.1 24.8
Virost 38.2 28
Williamson 30.2 38
Govito 30.7 31.7
Trares 30.9 25.7
Willbond 28.1 30.7
Fowler 27.2 29.9
Hawley 30.2 31
Hall 26.2 34.5
Sanchez 33.4 35.3
Naymik 33.6 28.2
  1. State the null and alternate hypotheses
  2. State the decision rule
  3. Compute the value of the test statistic.
  4. What is your decision regarding the null hypothesis. Interpret the result.

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