Question

Explain why a hypothesis test may be used to test whether the mean tax rates for the two genders differ.

1. A hypothesis test may be used to test whether the mean tax rates for the two genders differ because-
• Each sample is taken separately from the others.
• Each sample is drawn at random.
• Every sample size is relatively small in comparison to the population size.
• Every sample size is substantial.

### What is hypothesis testing?

In statistics, hypothesis testing is the process by which a predicting the occurrence an assertion about a population parameter. The analyst’s methodology is determined by the characteristics of the information and the purpose of the analysis.
Some key features regarding the hypothesis testing are-
• Using sample data, hypothesis testing is employed to evaluate the validity of a hypothesis.
• Such information may be derived out of a larger population or a data-generating procedure.
• In the following descriptions, the term “population” will be employed for both of these cases.
• Given the data, the test shows proof for the hypothesis’s plausibility.
• Statistical analysts put a hypothesis to the test by assessing and investigating a random sample of the entire population under consideration.
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