Question

what are taxes used to fund

Real estate taxes are used to fund local education institutions, police protection, libraries, and other local public services. A household's real estate tax bill is based on the value of the house. In a recent year, the mean real estate tax bill per $1,000 assessed value for all households in a certain country was $8.37. A random sample of 50 rural households results in a sample mean real estate bill per $1,000 assessed value of $6.79 with a standard deviation of $6.31. Use the level of signifigance a = 0.05.

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A) Conduct a hypothesis test using the P-value approach and a level of signifigance of a = 0.05 to determine if the evidence suggests the mean real estate bill for rural households per $1,000 assessed value differs from that of all households.

Choose the correct hypotheses:

\(Ho: (choose \ option: p, \ \mu, \ or

\ \sigma),(choose \ option: \ <, \ >, \ =, \ or \ does \ not\ equal)\ 8.37\)

\(H1: (choose \ option: p, \ \mu, \ or \ \sigma),(choose \ option: \ <, \ >, \ =, \ or \ does \ not\ equal)\ 8.37\)

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B) Find the test statistic: t0=___.

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C) Find the P-value: P-value=___.

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D) Use the level of signifigance a=0.05. What can be concluded from the hypothesis test?

a) The evidence suggests that rural households have a different mean real estate tax bill.

b) The evidence does not suggest that rural households have a lower mean real estate tax bill.

c) The evidence does not suggest that rural households have a different mean real estate tax bill.

d) The evidence suggests that rural households have a lower mean real estate tax bill.

Source: www.chegg.com

Category: Taxes

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