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Some accounting firms give the client an option to pay a fee when the tax return is completed that guarantees tax advices and support from the accountant if the client were audited. A large accounting firm is trying to determine what fee to charge for next year's returns. In previous years, the actual mean cost to the firm for attending a client audit session was $740. To determine if this cost has changed, the firm randomly samples 35 client audit fees. The sample mean audit cost was $700 with a standard deviation of $85. Complete parts a and b below.
a) Develop a 99% confidence interval estimate for the mean audit cost. The 99% confidence interval for the mean audit cost is left parenthesis $ (__,__) .(Round to the nearest dollar as needed.)
State the null and alternative hypotheses and explain how you developed these two hypotheses.
You will be graded on accuracy, completeness (addressing each point above), and effectiveness (utility, ease of reading).
a) Explain why it would be hard to take a Simple Random Sample? b) Describe how to take a cluster sample of chocolate chip cookies.
Suppose that, from a population of 75 bank accounts, we want to take a random sample of six accounts in order to learn about the population. How many different random samples of six accounts are possible?
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