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9th Edition

David R. Anderson + 4 others

Publisher: South-Western College Pub

ISBN: 9780357045435

Chapter 14.6, Problem 37E

**a.**

To determine

Obtain a 95% confidence interval for the mean amount of total itemized deductions for all taxpayers with an adjusted gross income of $52,500.

**b.**

To determine

Obtain a 95% prediction interval for the amount of total itemized deductions for all taxpayers with an adjusted gross income of $52,500.

**c.**

To determine

Explain whether the request for IRS agent for an audit is justified or not.

**d.**

To determine

Give a guideline to the IRS agent as to the amount of total itemized deductions a taxpayer with an adjusted gross income of $52,500 should claim before an audit is recommended.