Question: Most owners of digital cameras store their

> Mason Phillips, age 45, and his wife, Ruth, live at 230 Wood Lane, Salt Lake City, UT 84101. Mason's Social Security number is 111-11-1111. Ruth's Social Security number is 123-45-6789. Mason and Ruth are cash basis taxpayers and had the following items

> Jane Smith, age 40, is single and has no dependents. She is employed as a legal secretary by Legal Services, Inc. She owns and operates Typing Services located near the campus of Florida Atlantic University at 1986 Campus Drive. Jane is a material partic

> Logan B. Taylor is a widower whose wife, Sara, died on June 6, 2016. He lives at 4680 Dogwood Lane, Springfield， MO 65801. He is employed as a paralegal by a local law firm. During 2018, he had the following receipts: Logan inherited

> Ashley Panda lives at 1310 Meadow Lane, Wayne, OH 43466, and her Social Security number is 123-45-6789. Ashley is single and has a 20-year-old son, Bill His Social Security number is 111-11-1112. Bill lives with Ashley, and she fully supports him. Bill s

> Tim and Sarah Lawrence are married and file a joint return. Tim's Social Security number is 123-45-6789, and Sarah's Social Security number is 111-11-1111. They reside at 100 Olive Lane, Covington, LA 70434. They have two dependent children, Sean and Deb

> Addison Parker (Social Security number 123-45-6785), single and age 32, lives at 3218 Columbia Drive, Spokane, WA 99210. She is employed as regional sales manager by VITA Corporation, a manufacturer and distributor of vitamins and food supplements. Addis

> Daniel B. Butler and Freida C. Butler, husband and wife, file a joint return. The Butlers live at 625 Oak Street in Corbin, KY 40701. Dan's Social Security number is 111-11-1112, and Freida's is 123-45-6789. Dan was born on January 15, 1967, and Freida w

> Cecil C. Seymour is a 64-year-old widower. He had income for 2018 as follows: The cost of the annuity was $46,800, and Cecil was expected to receive a total of 260 monthly payment of $450. Cecil has received 22 payments through 2018. Cecil's 40-year-ol

> Andre acquired a computer on March 3, 2018, for $2,800. He elects the straight line method for cost recovery Andre does not elect immediate expensing under 179. He does not claim any available additional first -year depreciation. Calculate Andre's cost r

> Bigham Corporation, an accrual basis calendar year taxpayer, sells its services under 12-month and 24-month contracts. The corporation provides services to each customer every month. On July 1, 2018, Bigham sold the following customer contracts: Determ

> Sydney, a single taxpayer, had $80,000 in adjusted gross income in year 2. During the year, she contributed $15,000 to her church. She also had a $17,000 contribution carryover from her year 1 church contributions. What is the maximum amount of charitabl

> Paul and Sonja, who are married, had itemized deductions of $13,200 and $400, respectively during 2018. Paul suggests that they file separately he will itemize his deductions from AGI, and she will claim the standard deduction a. Evaluate Paul's suggesti

> On January 1, 2018, Kunto a cash basis taxpayer, pays $46,228 for a 24-month certificate. The certificate is priced to yield 4% (the effective interest rate) with interest compounded annually. No interest is paid until maturity, when Kunto receives $50,0

> Ava and her husband, Leo, file a joint return and are in the 24% tax bracket in 2018. Ava's employer offers a child and dependent care reimbursement plan that allows up to $5,000 of qualifying expenses to be reimbursed in exchange for a $5,000 reduction

> Compute the 2018 AMT exemption for the following taxpayers. a. Bristol, who is single, reports AMTI of $650,000. b. Marley and Naila are married and file a joint tax return. Their AMTI is $1,528,000.

> Derek, a cash basis, unmarried taxpayer, had $610 of state income tax withheld during 2018. Also in 2018, Derek paid $50 that was due when he filed his 2017 state income tax return and made estimated payments of $100 toward his 2018 state income tax liab

> Samuel and Annamaria are married, file a joint return, and have three qualifying children. In 2018, they earn wages of $34,000 and no other income Determine the amount of their earned income credit for 2018.

> Lara uses the standard mi1eage method for determining auto expenses. During 2018, she used her car as follows: 9,000 miles for business, 2,000 miles for personal use, 2,500 miles for a move to a new job, 1,000 miles for charitable purposes, and 500 mi1es

> On May 9, 2018, Glenna purchases 500 shares of Ignaz Company stock for $7,500. On June 30, 2018, she writes a call option on the stock, giving the grantee the right to buy the stock for $9,000 during the following 12-month period Glenna receives a call p

> Emily, who is single, sustains an NOL of $7,800 in 2018. The loss is carried forward to 2019. For 2019, Emily's income tax information before taking into account the 2018 NOL is as fo11ows: How much of the NOL carryforward can Emily use in 2019, and wh

> Phillis and Trey are married and file a joint tax return. For 2018, they have $4,800 of nonbusiness capital gains, $2,300 of nonbusiness capital losses, $500 of interest income, and no itemized deductions. The standard deduction for married filing jointl

> Jordan Johnson is single and has adjusted gross income of $50,000 in the current year. Additional information is as follows: What amount may Jordan claim as itemized deductions on her current-year income tax return? a. $12,000 b. $12,900 c. $13,300 d.

> Which of the following statements is true regarding the taxation of Social Security benefits? a. 85% is the maximum amount of taxable Social Security benefits. b. 50% is the maximum amount of taxable Social Security benefits. c. If a taxpayer's only sou

> A low-handicap golfer who uses Titleist brand golf balls observed that his average drive is 230 yards and the standard deviation is 10 yards. Nike has just introduced a new ball, which has been endorsed by Tiger Woods. Nike claims that the ball will trav

> The survey asked respondents to report the number of persons in the household who are related to the respondent and who earned any money from any job or employment (EARNRS). a. Estimate the mean number of earners per household in the United States. b. Wh

> Last year 24 million Canadians made donations to charitable or nonprofit organizations. A random sample of donors was drawn and the amount of each respondent’s donation was recorded. Estimate with 95% confidence the total donated by all Canadian donors.

> In the United States as well as most other countries, the income tax is progressive in that richer people pay not only more in absolute terms but more in percentage as well. Other taxes are regressive. One such tax is the tax on beer, wine, and liquor. T

> It is a long-running joke that Britons have bad and missing teeth. However, Americans’ dental problems may be worse. In a study reported in the British Medical Journal a random sample of Americans was drawn and the number of missing teeth was recorded. E

> Each year the Internal Revenue Service of the United States issues a migration report that shows how many tax filers moved from one state to another. In an effort to answer the question of why so many people are moving from states that usually vote for D

> In the next 10 years, there will be the largest intergenerational wealth transfer in Canadian history, and the amount will likely grow over the next decade. There are 2.5 million Canadians 75 and older and when they pass on their sons, daughters, and gra

> A tax preparation company compiled the taxable income of a random sample of waiters and waitresses. The taxable income was based on their pay stubs from the restaurant where each worked. a. Estimate with 95% confidence the mean taxable income of waiters

> In another study on student loan indebtedness, a random sample of graduates 20–30 years old were asked the amount they paid monthly on their loans. Estimate with 99% confidence the mean monthly payment.

> Approximately 70% of students graduating from a 4-year program have student loan debt. To examine the problem, a random sample of graduates of 4-year colleges was taken and the amount of indebtedness was recorded. There are 43.3 million Americans with st

> Refer to Exercise 12.44. In addition to household debt, the survey asked each household to report the debt-to-income ratio. Estimate with 90% confidence the mean debt-to-income ratio. Data from Exercise 12.44: In 2010, most Canadian cities were experien

> In 2010, most Canadian cities were experiencing a housing boom. As a consequence, home buyers were required to borrow more on their mortgages. To determine the extent of this problem, a survey of Canadian households was undertaken wherein household heads

> During the last decade, many institutions dedicated to improving the quality of products and services in the United States have been formed. Many of these groups annually give awards to companies that produce high-quality goods and services. An investor

> Companies that sell groceries over the Internet are called e-grocers. Customers enter their orders, pay by credit card, and receive delivery by truck. A potential e-grocer analyzed the market and determined that the average order would have to exceed $85

> On a per capita basis, the United States spends far more on health than any other country. To help assess the costs, annual surveys are undertaken. One such survey asks a sample of Americans to report the number of times they visited a health care profes

> Because of the enormity of the viewing audience, firms that advertise during the Super Bowl create special commercials that tend to be quite entertaining. Thirty-second commercials cost several million dollars during the Super Bowl game. A random sample

> To help estimate the size of the disposable razor market, a random sample of men was asked to count the number of shaves they used each razor for. Assume that each razor is used once per day. Estimate with 95% confidence the number of days a pack of 10 r

> Traffic congestion seems to worsen each year. This raises the question, how much does roadway congestion cost the United States annually? The Federal Highway Administration’s Highway Performance Monitoring System conducts an analysis to produce an estima

> Generic drug sales make up about half of all prescriptions sold in the United States. The marketing manager for a pharmaceutical company wanted to acquire more information about the sales of generic prescription drugs. To do so, she randomly sampled 475

> An increasing number of North Americans regularly take vitamins or herbal remedies daily. To gauge this phenomenon, a random sample of Americans was asked to report the number of vitamin and herbal supplements they take daily. Estimate with 95% confidenc

> OfficeMax, a chain that sells a wide variety of office equipment often features sales of products whose prices are reduced because of rebates. Some rebates are so large that the effective price becomes $0. The goal is to lure customers into the store to

> Bankers and economists watch for signs that the economy is slowing. One statistic they monitor is consumer debt, particularly credit card debt. The Federal Reserve conducts surveys of consumer finances every 3 years. The last survey determined that 23.8%

> A random sample of American adults was asked whether or not they smoked cigarettes. Those who responded affirmatively were asked how many cigarettes they smoked per day. Assuming that there are 50 million American adults who smoke, estimate with 95% conf

> A company that produces universal remote controls wanted to determine the number of remote-control devices American homes contain. The company hired a statistician to survey 240 randomly selected homes and determine the number of remote controls. If ther

> A growing concern for educators in the United States is the number of teenagers who have part-time jobs while they attend high school. It is generally believed that the amount of time teenagers spend working is deducted from the amount of time devoted to

> University bookstores order books that instructors adopt for their courses. The number of copies ordered matches the projected demand. However, at the end of the semester, the bookstore has too many copies on hand and must return them to the publisher. A

> Part of a university professor’s job is to publish his or her research. This task often entails reading a variety of journal articles to keep up to date. To help determine faculty standards, a dean of a business school surveyed a random sample of 12 prof

> A parking control officer is conducting an analysis of the amount of time left on parking meters. A quick survey of 15 cars that have just left their metered parking spaces produced the following times (in minutes). Estimate with 95% confidence the mean

> A federal agency responsible for enforcing laws governing weights and measures routinely inspects packages to determine whether the weight of the contents is at least as great as that advertised on the package. A random sample of 18 containers whose pack

> A diet doctor claims that the average North American is more than 20 pounds overweight. To test his claim, a random sample of 20 North Americans was weighed, and the difference between their actual and ideal weights was calculated. The data are listed he

> How much money do winners go home with from the television quiz show Jeopardy? To determine an answer, a random sample of winners was drawn; the recorded amount of money each won is listed here. Estimate with 95% confidence the mean winnings for all the

> A courier service advertises that its average delivery time is less than 6 hours for local deliveries. A random sample of times for 12 deliveries to an address across town was recorded. These data are shown here. Is this sufficient evidence to support th

> a. Test the following hypotheses with = .05 given that x = 405, s = 100, and n = 1,000. b. Repeat part (a) assuming that you know that the population standard deviation is = 100. c. Explain why the conclusions produced in parts (a) and (b) are virtuall

> a. A statistics practitioner randomly sampled 1,500 observations and found x = 14 and s = 25. Test to determine whether there is enough evidence at the 5% significance level to infer that the population mean is less than 15. b. Repeat part (a) assuming t

> a. Compute the p-value in order to test the following hypotheses given that x = 52, n = 9, and σ = 5. H0: μ = 50 H1: μ > 50 b. Repeat part (a) with n = 25. c. Repeat part (a) with n = 100. d. Describe what happens to the value of the test statistic and i

> a. A statistics practitioner randomly sampled 10 observations and found x = 103 and s = 17. Is there sufficient evidence at the 10% significance level to conclude that the population mean is less than 110? b. Repeat part (a) assuming that you know that t

> a. A random sample of 11 observations was taken from a normal population. The sample mean and standard deviation are x = 74.5 and s = 9. Can we infer at the 5% significance level that the population mean is greater than 70? b. Repeat part (a) assuming th

> a. In a random sample of 500 observations drawn from a normal population, the sample mean and sample standard deviation were calculated as x = 350 and s = 100. Estimate the population mean with 99% confidence. b. Repeat part (a) assuming that you know th

> a. After sampling 1,000 members of a normal population, you find x = 15,500 and s = 9,950. Estimate the population mean with 90% confidence. b. Repeat part (a) assuming that you know that the population standard deviation is  = 9,950. c. Explain why the

> a. Estimate the population mean with 90% confidence given the following: x = 175, s = 30, and n = 5. b. Repeat part (a) assuming that you know that the population standard deviation is  = 30. c. Explain why the interval estimate produced in part (b) is

> A random sample of 8 observations was drawn from a normal population. The sample mean and sample standard deviation are x = 40 and s = 10. a. Estimate the population mean with 95% confidence. b. Repeat part (a) assuming that you know that the population

> a. To test the following hypotheses, a statistics practitioner randomly sampled 100 observations and found x = 106 and s = 35. Calculate the test statistic (and for Excel users, the p -value) of a test to determine whether there is enough evidence at the

> a. A statistics practitioner wishes to test the following hypotheses: A sample of 50 observations yielded the statistics x = 585 and s = 45. Calculate the test statistic (and for Excel users, the p-value) of a test to determine whether there is enough e

> a. A random sample of 25 observations was drawn from a normal population. The sample mean and sample standard deviation are x = 52 and s = 15. Calculate the test statistic (and for Excel users, the p-value) of a test to determine if there is enough evide

> a. Calculate the test statistic (and for Excel users, the p -value) when x = 145, s = 50, and n = 100. Use a 5% significance level. b. Repeat part (a) with x = 140. c. Repeat part (a) with x = 135. d. What happens to the t-statistic (and for Excel users

> In the 2010 census, 16.8% of American adults entered college but did not finish. Using the data from the Survey of Consumer Finances of 2013 test, determine whether that figure increased (EDCL: 3 = Some college).

> The proportion of Americans living in homes that they owned in 2010 was 65.8%. Is there sufficient evidence to infer that that figure increased by 2013? (HOUSECL: 1 = Owns)

> a. A statistics practitioner is in the process of testing to determine whether there is enough evidence to infer that the population mean is different from 180. She calculated the mean and standard deviation of a sample of 200 observations as x = 175 and

> In the 2010 census, the proportion of Black/African Americans was 12.9%. Has that percentage decreased? Conduct a test using the Survey of Consumer Finances of 2013 to answer the question (RACE: 2 = Black/African American).

> Because interest paid by banks on money left in savings accounts is so low, people are advised to keep very little in these accounts. To determine if people are following that advice, estimate the amount of money kept in savings accounts by middle-class

> How well educated are people in middle-class households? According to the U.S. Census the average American adult has completed 12.9 years of schooling. Is there enough evidence to conclude that the average middle class head of household has more educatio

> The interest rates charged by credit card companies is so high that consumers are advised to pay off their credit card debt as quickly as possible. To see if people are following this advice, estimate the credit card balance held by middle-class househol

> According to the United Census the average expenditure for food away from home was $2625. Is there enough evidence to infer that the average middle-class households spend less (FOODAWAY)?

> In the United States, there is no capital gains on houses until the last one is sold. Up to that point any gains are considered unrealized capital gains or losses on primary residence. Estimate the capital gains on the primary residence for middle class

> In 2013, the housing market started picking up. Were people getting themselves too much into debt and hoping that the price of their homes would increase? One way to judge is to determine the size of mortgages (NH_MORT). Estimate the amount owed on mortg

> There is no single definition of the middle class in the United States. For the purposes of analyzing the data from the Survey of Consumer Finances we have defined middle class on the basis of net worth. However, many economists define middle class on th

> There are a variety of ways in which households have debt. The largest is probably the mortgage on the home they live in. Others include student debt, vehicle loans, and credit card debt. a. To determine how much debt is carried by middle- class American

> A large number of American families are invested in the stock market. Many have various pension plans that use contributed funds to buy stocks. Many others have directly held shares in the stock market. a. Estimate the mean total value of stocks held dir

> a. The sample mean and standard deviation from a random sample of 10 observations from a normal population were computed as x = 23 and s = 9. Calculate the value of the test statistic (and for Excel users, the p-value) of the test required to determine w

> How much money do middle- class Americans keep in their checking account (CHECKING)? a. Estimate the mean amount held in checking accounts. b. What is the required condition? c. Is it satisfied?

> Because to be in the middle class requires a net worth of at least $67,300, we would expect the average age (AGE) of middle-class American adults to be greater than the average age of all-American adults, which is 50.4. a. Conduct a test to determine whe

> According to the Bureau of Labor Statistics, the average American family spent $2625 on food at restaurants. Is there enough evidence that wealthy households spend more than twice that figure (FOODAWAY)?

> Checking accounts are often used for household expenditures. Because they pay no interest, most households including wealthy ones keep a minimum amount in these accounts. a. Estimate the mean total value of checking accounts held by wealthy households (C

> Net worth is defined as the difference between total assets and total liabilities including debt. Does high net worth mean that these households have little or no debt? a. Answer the question by estimating the mean debt of all wealthy households (DEBT).

> Do wealthy households have late payments? Estimate the proportion of wealthy households that had at least one late payment in the previous year (LATE: 1).

> How does one get to be in this class whose minimum household net worth is about $9.5 million. Could this be achieved through high income alone? Examine this issue by estimating the mean annual income of wealthy households (INCOME).

> How long does it take to become wealthy? One way to answer the question is to examine the age of the head of an average wealthy household. a. Conduct a test to determine whether there is enough evidence to conclude that the mean age is greater than 60 (A

> Is a graduate degree a pathway to a wealthy household? Estimate the proportion of wealthy households whose heads have graduate degrees (EDUC: 17 = Graduate school).

> Another sign of financial difficulties is when a household finds that overall expenses are unusually high. Estimate with 99% confidence the number of households whose expenses are unusually high (EXPENSHILO: 1 = Unusually high).

> a. The sample mean and standard deviation from a sample of 81 observations are x = 63 and s = 8. Estimate  with 95% confidence. b. Repeat part (a) with n = 64. c. Repeat part (a) with n = 36. d. Describe what happens to the confidence interval estimate

> Another sign of financial problems is when a household is late with at least one payment. Estimate with 90% confidence the number of households that had a least one late payment in the preceding 12 months (LATE: 1 = Yes).

> Government debt and personal debt are a growing concern. Estimate the number of households that have debts (HDEBT: 1 = Yes).

> How many American adults (18 and over) are working in some way? Estimate the number (LF: 1 = Working in some way).

> If there was gender equality in the head of household designation the number of households with male’s head of households would equal the number of households with females as heads of households. Conduct a test to determine that there is no gender equali

> The 2010 Census showed that the percentage of American adults who had an advanced degree (Read: graduate) was 10.5%. Is there sufficient evidence to infer that by 2013 that figure had been increased (EDUC: 17 = Graduate school)?

> The 2010 census showed that the percentage of Black Americans who did not finish high school was 15.8%. Did this figure decrease by 2013? Conduct a test to determine whether there is enough evidence to infer that the proportion of Black Americans who did

> The proportion of women who did not finish high school was 12.4% according to the census in 2010. Is there enough statistical evidence to conclude that the proportion has decreased in 2013 (HHSEX: 2 = Female; EDCL: 1 = No high school diploma)?