Problem 3: Tax Preparation Savings? Every year, Americans fill out their tax return forms (this year, Tax Day was moved until May 17). A new tax preparation company wanted to advertise that their...

Question D)

Question E)

T Stats > Paired and enter Company for Sample 1 and Software for Sample 2 to verify your test statistic from part (e) and your p-value in part (). Copy the output into your document. h) State your decision whether you reject or do not reject the null hypothesis and the reason for your decision in one sentence. i) State your conclusion in context of the problem in one or two complete sentences. "/>
Extracted text: Problem 3: Tax Preparation Savings? Every year, Americans fill out their tax return forms (this year, Tax Day was moved until May 17). A new tax preparation company wanted to advertise that their company would save the average individual money compared to an individual using an online tax preparation software. To determine if there was evidence to support their claim, the company decided to conduct an experiment. In the experiment, a random sample of 15 American tax filers was selected and their taxes were prepared by the company's most senior accountant as well as from the software (both free of charge). To keep the software preparation uniform, one independent accountant prepared each of the 15 tax filers' taxes in the same way without knowledge of the company's work. The data set is called “Tax Preparation Savings" and data are presented in dollars. Negative values are the amount an individual tax filer would have to pay. Assume all conditions hold and use a significance level of 0.10 when you test the hypothesis. a) Calculate the difference between the company results and the software result for each individual tax filer, (subtract Company – Software) using StatCrunch. List the difference for each of the pairs in one column in your solutions document. b) Obtain the sample mean of these differences and the sample standard deviation of these differences in StatCrunch. Copy the table that you obtain from StatCrunch and round the values to two decimal places. c) Define the population parameter in context in one sentence. d) State the null and alternative hypotheses using correct notation. e) Calculate the test statistic. Please do this "by hand" using the formula and showing your work (please type your work). Use the values you obtained in part (b). Round the test statistic to three decimal places. f) Calculate p-value using the T-calculator in StatCrunch (STAT → Calculators → T). Use the correct probability notation as you present your answer. In addition, state the degrees of freedom for this test and how these were calculated. g) Use StatCrunch Stat > T Stats > Paired and enter Company for Sample 1 and Software for Sample 2 to verify your test statistic from part (e) and your p-value in part (). Copy the output into your document. h) State your decision whether you reject or do not reject the null hypothesis and the reason for your decision in one sentence. i) State your conclusion in context of the problem in one or two complete sentences.


Extracted text: StatCrunch Tax Preparation Savings StatCrunch - Applets - Edit - Data - Stat - Graph - Help - Row Company Software var3 var4 var5 var6 1 -4392 -4321 2 339 546 3 1294 1344 4 3339 2921 -998 -1009 -2835 -2193 7 1662 1024 8. -49 -234 9. 1001 885 10 3065 1997 11 -3298 -4072 12 168 234 13 539 392 14 -1279 -1345 15 102 -102 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30