Calculate the standard deduction
This year Ted received a $600 refund of state income tax. Ted could have deducted $1,100 of state income tax on the prior year return. What amount of the refund, if any, should Ted deduct if he filed using the standard deduction?
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1. Give the null and alternative hypotheses, 2. Calculate the test statistic, and 3. give the conclusion (including a comparison to alpha or the critical value) to receive full credit.
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