THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 38

Essay

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
The number of hours spent studying by students on Michigan State campus in the week before final exams follows a normal distribution with standard deviation 9.5 hours.A random sample of these students is taken to estimate the population mean number of hours studying.
-Without doing the calculations,state whether a larger or smaller sample would be required to guarantee that the probability that the sample mean differs from the population mean by more than 1.8 hours is less than 0.05,when compared to the sample needed to ensure that the probability that the sample mean differs from the population mean by more than 2.1 hours is less than 0.05.

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Definitions:

AMT Purposes

Refers to the objectives of the Alternative Minimum Tax, which is to ensure that individuals and corporations that benefit from certain exclusions, deductions, or credits pay at least a minimum amount of tax.

Tax Return

The form or forms used to report income and file income taxes with tax authorities, such as the IRS.

Gains

The increase in value of an asset or investment, representing the difference between the selling price and the purchase price.

Losses

Financial losses are considered for tax purposes as deductions from income earned, which can reduce taxable income and therefore tax liability.