Discussion:
Q: It has been reported that 80% of taxpayers who are audited by the Internal Reve-nue Service end up paying more money in taxes. Assume that auditors are random-ly assigned to cases, and that one of the ways the IRS oversees its auditors is tomonitor the percentage of cases that result in the taxpayer paying more taxes. If a sample of 400 cases handled by an individual auditor has 77.0% of those she audited paying more taxes , is there reason to believe her overall "pay more" per-centage might be some value other than 80%? Use the 0.10 level of significance in reaching a conclusion. Determine and interpret the p-value for the test.