Because of the Complex Nature of the U

question 141

Multiple Choice

Because of the complex nature of the U.S.income tax system,many people have questions for the Internal Revenue Service (IRS) .Yet,an article published by the Detroit Free Press entitled "Assistance: IRS Help Centers Give the Wrong Information" discusses the propensity of IRS staff employees to give incorrect tax information to tax-payers who call with questions.Then IRS Inspector General Pamela Gardiner told a Senate subcommittee that "the IRS employees at 400 taxpayer assistance centers nationwide encountered 8.5 million taxpayers face-to-face last year.The problem: When inspector general auditors posing as taxpayers asked them to answer tax questions,the answers were right 69% of the time." Suppose an independent commission was formed to test whether the 0.69 accuracy rate is correct or whether it is actually higher or lower.The commission has randomly selected n = 180 tax returns that were completed by IRS assistance employees and found that 105 of the returns were accurately completed.
State the appropriate null and alternative hypotheses.

• A)H₀ : p = 0.69 H_a : p ≠ 0.69
• B)H₀ : p = 0.58 H_a : p ≠ 0.58
• C)H₀ : p > 0.69 H_a : p ≤ 0.69
• D)H₀ : p > 0.58 H_a : p ≤ 0.58

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Definitions:

Market Signals

Indications or signs derived from market data that can suggest the future direction of market prices.

Sarbanes-Oxley Act

A U.S. federal law enacted in 2002 to protect investors by improving the accuracy and reliability of corporate disclosures.

Corporate Governance

A system of rules, practices, and processes by which a company is directed and controlled, focusing on balancing the interests of stakeholders.

Financial Intermediary

An institution that acts as a middleman between investors and borrowers, facilitating the flow of funds in the financial market.