The IRS plans an SRS. The Internal Revenue Service plans to examine anSRS of individual

Chapter 0, Problem 20.36

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The IRS plans an SRS. The Internal Revenue Service plans to examine anSRS of individual federal income tax returns from each state. One variable ofinterest is the proportion of returns claiming itemized deductions. The totalnumber of tax returns in a state varies from more than 15 million in California toabout 240,000 in Wyoming.(a) Will the margin of error for estimating the population proportion changefrom state to state if an SRS of 2000 tax returns is selected in each state? Explainyour answer.(b) Will the margin of error change from state to state if an SRS of 1% of all taxreturns is selected in each state? Explain your answer.

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