A Test Is Conducted to Compare Three Different Income Tax

question 87

Multiple Choice

A test is conducted to compare three different income tax software packages to determine whether there is any difference in the average time it takes to prepare income tax returns using the three different software packages. Ten different persons' income tax returns are done by each of the three software packages and the time is recorded for each. The computer results are shown below. Based on these results and using a 0.05 level of significance which is correct regarding the primary hypothesis?

• A) The three software packages are not all the same because p-value = 1.6E-14 is less than 0.05.
• B) The three software packages are all the same because p-value = 1.6 is greater than 0.05.
• C) The three software packages are not all the same because p-value = 2.66E-5 is less than 0.05.
• D) The three software packages are all the same because p-value = 2.66 is greater than 0.05.

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Definitions:

CPI

This index reflects the mean shift in costs over time for a collection of consumer goods and services as experienced by urban buyers.

Ear of Corn

An ear of corn is the part of the corn plant that contains the kernels, which are the seeds of the plant, encased in a husk.

Nominal Interest Rate

The interest rate before adjustments for inflation, often reported on a per annum basis.

Real Interest Rate

The interest rate adjusted for inflation, reflecting the true cost of borrowing and the real yield to savers and investors.