Testing Hypotheses: Two Sample Tests

Fifty-eight of 2,000 randomly sampled corporations had their 1995 federal income tax returns audited. In another sample of 2,500 corporations, 61 had their 1994 returns audited. Was the fraction of corporate returns audited in 1995 signifi cantly different from the 1994 fraction? Test the appropriate hypotheses at α = 0.01.

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