An IRS analyst is interested in testing the hypothesis that

An IRS analyst is interested in testing the hypothesis that for a sample of 8,109 individuals the average federal income tax return in the most recent tax year is $1,035.

decide which of the following four methods is appropriate.

One sample t test

Paired samples t test

Independent samples t test

One-way analysis of variance (ANOVA)

Solution

Here the population is the federal income tax return of individuals and sample is 8109 invidividuals.

As there is only one sample,

One sample t test is to be used