According to a Lawyers

question 71

Essay

According to a Lawyers.com survey, only 35% of adult Americans had a will (The Wall Street Journal, December 12). Suppose a recent survey of 250 adult Americans found 100 adults with wills.
A) Specify the competing hypotheses to determine whether the proportion of adult Americans who have a will differs from the proportion reported.
B) Calculate the value of the test statistic and the p-value.
C) At the 5% significance level, is the proportion different? Explain.

• A) Specify the competing hypotheses to determine whether the proportion of adult Americans who have a will differs from the proportion reported.
• B) Calculate the value of the test statistic and the p-value.
• C) At the 5% significance level, is the proportion different? Explain.

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Definitions:

Net Pay

The amount of money that an employee takes home after all deductions, such as taxes and retirement contributions, have been subtracted from the gross salary.

FICA Tax

A U.S. federal tax that funds Social Security and Medicare, deducted from employees' paychecks and matched by employers.

Federal Income Tax

The tax levied by the IRS on the annual earnings of individuals, corporations, trusts, and other legal entities.

Form 941

A tax form filed by employers in the United States to report withholding taxes, Social Security, and Medicare taxes.