Adventures in Education, Inc.
5N581 Hidden Springs Dr    St. Charles, IL 60175     630-377-5035
 

Error in Tax Preparation

Two different tax preparation software packages have been used by employees of the ‘Perfect Tax Return’ company and the error percentages for each employee using each package have been recorded. Is there enough evidence to conclude that the new tax preparation software significantly reduces error? Perform a two-sample hypothesis paired t-test at a 5% significance level.

 

Old Tax Prep Software

 

New Tax Prep Software

Employee

Number of Returns Prepared

Error Percentage (%)

Number of Returns Prepared

Error Percentage (%)

A

350

6

511

5

B

375

6

390

2

C

224

7

415

1

D

317

7

227

3

E

278

4

390

3

F

250

3

410

6

G

375

5

290

3

H

410

6

400

7

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© copyright 2003 Elisabeth Schuster