Question

A random telephone survey of 1021 adults (aged 18 and older) was conducted by Opinion Research Corporation on behalf of Complete Tax, an online tax preparation and e-filing service. The survey results showed that 684 of those surveyed planned to file their taxes electronically (Complete Tax Tax Prep Survey 2010). a. Develop a descriptive statistic that can be used to estimate the percentage of all taxpayers who file electronically. b. The survey reported that the most frequently used method for preparing the tax return is to hire an accountant or professional tax preparer. If 60% of the people surveyed had their tax return prepared this way, how many people used an accountant or professional tax preparer? c. Other methods that the person filing the return often used include manual preparation, use of an online tax service, and use of a software tax program. Would the data for the method for preparing the tax return be considered categorical or quantitative?

Answer 1

Answer:

a. See attachment below

b. 613 people

c. Categorical

Step-by-step explanation:

a. View attachment below

b.

Given

Total Number of People Surveyed = 1021

X tax return by professional / Number of People Surveyed = 60%

X tax /1021 = 0.6

X tax = 0.6 * 1021

X tax = 612.6

X tax = 613------ Approximated

So, the number of people used an accountant or professional tax preparer are 613.

c.

The data for preparing a tax return will be considered as categorical as the methods for a person to file his/her tax returns are categorized into four which are:

1.Electronically

2.Manual preparation

3.Online tax service

4.Use of software tax program