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Varvara68 [4.7K]
3 years ago
15

The Social Security Administration increased the taxable wage base from $106,800 to $110,100. The 6.2% tax rate is unchanged. Jo

e Burns earned over $120,000 each of the past two years.
a.

What is the percent increase in the base?(Round your answer to the nearest hundredth percent.)

Percent increase

%

b.

What is Joe’s increase in Social Security tax for the new year?(Round your answerto the nearest cent.)

Increase in social security tax

$
Mathematics
1 answer:
Rzqust [24]3 years ago
5 0

Answer:

The Social Security Administration increased the taxable wage base from $106,800 to $110,100.

A:

The percent increase in the base =

\frac{110100-106800}{106800}\times100=3.09%

B:

Previous year tax = 0.062\times106800=6621.60 dollars

This year tax = 0.062\times110100=6826.20 dollars

Increase in tax = 6826.20-6621.60=204.60 dollars

Hence, Joe’s increase in Social Security tax for the new year is $204.60.

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a) The proportions are not form matched-pairs data.

b) The null hypothesis failed to be rejected.

There is  not enough evidence to support the claim that there is evidence of a significant increase in the proportion of people who suffer heart attacks when using Avandia compared to other treatments.

Step-by-step explanation:

a) Two data sets are "paired" when the following one-to-one relationship exists between values in the two data sets:

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The claim is that there is evidence to suggest that there is a significant increase in the proportion of people who suffer heart attacks when using Avandia compared to other treatments.

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H_0: \pi_1-\pi_2=0\\\\H_a:\pi_1-\pi_2> 0

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The sample 1 (Avindia treatment), of size n1=1456 has a proportion of p1=0.0185.

p_1=X_1/n_1=27/1456=0.0185

The sample 2 (other treatment), of size n2=2895 has a proportion of p2=0.0142.

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p_d=p_1-p_2=0.0185-0.0142=0.0044

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p=\dfrac{X_1+X_2}{n_1+n_2}=\dfrac{27+41}{1456+2895}=\dfrac{68}{4351}=0.0156

The estimated standard error of the difference between means is computed using the formula:

s_{p1-p2}=\sqrt{\dfrac{p(1-p)}{n_1}+\dfrac{p(1-p)}{n_2}}=\sqrt{\dfrac{0.0156*0.9844}{1456}+\dfrac{0.0156*0.9844}{2895}}\\\\\\s_{p1-p2}=\sqrt{0.00001+0.00001}=\sqrt{0.00002}=0.004

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The null hypothesis failed to be rejected.

There is  not enough evidence to support the claim that there is evidence to suggest that there is a significant increase in the proportion of people who suffer heart attacks when using Avandia compared to other treatments.

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