Question

Clint Barton is a self-employed consultant who runs his company, Hawkeye Solutions, out of a house that he owns that he does not live in. He uses the main floor for his work and rents out the second floor to a tenant. Since he uses a fair amount of computing in his work, he wants to make sure that he writes off a representative portion of the electrical bill for the house against the business. In the past, he estimated that 70% of the electricity in the house goes towards the business.

Since the Canada Revenue Agency might want to see documentation about his expenses, Barton wants to sample some of the power use to provide support for his case. Since the building has central heating and cooling, these electrical costs are shared evenly as utilities and Barton has already accounted for them separately.

Barton connected monitors to lines going to each floor for non-utility power. Because he has had disagreements about proper expenses in the past, he wants to provide strong evidence to the Canada Revenue Agency to support his claim that he uses 70% of the non-utility power for the business.

Design a test for Barton where he will record the values of the power going upstairs and to the main floor every day for a month (30 days). And answer the following questions (use complete sentences and exact equations where possible):

c) What is the test statistic for this test?

Answer 1

Answers .he null hypothe. STs p0.0 Barton uses 10% of the non-ulili power fothe busness he alternative hypothesfs pto10 Barton does not use 70% of the Don- uilily poloer fo the husiness Bav ton want to use the sanifitan evel 0.05 Now find the test statfstic fothis test Obseved typothe sized Plas decinal 0.7 1s/30 21/20 plas fraition) 15 X 30 30 0.0837 std.es0 2.39 Z P-value (two-tailed) 0.01 68 he test statis tîc is-a.39