A Sample of 1,400 American Households Was Asked If They

question 18

Multiple Choice

A sample of 1,400 American households was asked if they planned to buy a new car next year. Of the respondents, 34% indicated they planned to buy a new car next year. Construct a 98% confidence interval of the proportion of American households who expect to buy a new car next year.

• A) [0.3074, 0.3726]
• B) [0.3105, 0.3695]
• C) [0.3140, 0.3660]
• D) [0.3392, 0.3408]

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Definitions:

AGI Floor

A threshold based on a taxpayer's adjusted gross income (AGI) that limits the deductibility of certain expenses.

Professional Dues

Fees paid to a professional organization or union that the member may be able to deduct on their tax return.

Medical Expense Deduction

A tax deduction for expenses related to the diagnosis, cure, mitigation, treatment, or prevention of disease.

Adjusted Gross Income

Gross income minus adjustments, used to determine taxable income on an individual's tax return.