Question

The data below give the adjusted gross in thousands of dollars. Adjusted Gross Income Itemized Deductions XY ($1,000s) ($1,000s)) 22 9.6 11.2 484 729 92.16 92.16 27 9.6 239.2 32 10.1 323.2 1024 2 304 10 2.0) 1 3.2) 192.25 48 11.1 532.8 65 13.5 977.5 u225 85 17.7 3בכר 15 04.5 28 2o 31 3.25 552.26 1440 120 23.5 With the estimated regression equation y = 5.33 +0.14x, the point estimate of a reasonable level of total itemized deductions for a taxpayer with an adjusted gross income of $47,500 is $11,980. (a) Develop a 95% confidence interval for the mean amount of total itemized deductions (in thousands of dollars) for all taxpayers with an adjusted gross income of $47,500. (Round your answers to two decimal places.) $10.95 thousand to $12.98 thousand lader:11.98-7.5706.0.9894 - JU(41)+L(47.5-57) (264))) - 10.4 Upper - 11.98+ 2.5706*0.9894-1)+147.5-57)717448))) = 19.98 (b) Develop a 95% prediction interval estimate for the amount of total itemized deductions (in thousands of dollars) for a particular taxpayer with an adjusted gross income of $47,500. (Round your answers to two decimal places.) $19.25 thousand to $14.21 thousand lower. 1.98-3:5704.0.9894-1+1)+47.5-57-71764 9.) Upper : 11.98+3.570.0.9894 (1++147.55-57)/17648)) (c) If the particular taxpayer referred to in part (b) claimed total itemized deductions of $18,400, would the IRS agent's request for an audit appear to be justified? - 14.7) Since the predicted amount of itemized deductions is significantly greater than the actual claimed itemized deductions, the agent's request for an audit appears to be justified. Since the predicted amount of itemized deductions is roughly the same as the actual claimed itemized deductions, the agent's request for an audit does not appear to be justified. Since the predicted amount of itemized deductions is significantly less than the actual claimed itemized deductions, the agent's request for an audit appears to be justified. Since the predicted amount of itemized deductions is roughly the same as the actual claimed itemized deductions, the agent's request for an audit appears to be justified. Since the predicted amount of itemized deductions is significantly greater than the actual claimed itemized deductions, the agent's request for an audit does not appear to be justified. Use your answer to part (b) to give the IRS agent a guideline as to the amount of total itemized deductions (in thousands of dollars) a taxpayer with an adjusted gross income of $47,500 could claim before an audit is recommended. (Round your answer to two decimal places.) upper Any deductions exceeding the $1471 thousand -Select- limit could suggest an audit. Need Help? Read Talk to a Tutor Ex= 399 Ey = 95.1 Slope 15 SSxy1 ssx = 107.7.17648.0.14 n=7 y-intercept, ay-by13.5857-10.14).57. 5.33 x= Exln 399/72 9-5.33 +0.14% X=47.5 y = Eyln 95.117. 9.5.33+(0.44) 47.5=11.8 Ssxx - {xe-({x)"In : 30391: (399)217=7648 SEY ()' In 1457.53-195.15417 165.3985714 Exy 6528.4 Ex-30391

please assist with d. it's incorrect

Answer 1