Statistics: Z-test Hypothesis Testing – #25162


Question: The town council of Pig Mountain, Vermont, is concerned about the large number of delinquent tax bills among its residents. Borrowing a strategy from a nearby town, the Council works with the Pig Mountain Gazette to publish a weekly listing of tax delinquents. To test the effectiveness of the technique in its first six months, the Council randomly assigns 50 tax delinquents to the list published in the newspaper and 50 to the normal mailing of tax delinquency notices. Apply of the five steps of hypothesis testing and interpret the results.


Table 3. The Impact of Public Shaming on Local Tax Payments in Pig Mountain, Connecticut
Tax payments Tax delinquency notice in newspaper Total
Not publicly shamed Publicly shamed
Made no tax payment 44 11 55
88.0% 22.0% 55.0%
Made some or all of tax payment 6 39 45
12.0% 78.0% 45.0%
Total 50 50 100
100.0% 100.0% 100.0%

Χ2 = 44.000 (from SPSS), df=1

φ=0.663

λ=.622

γ=0.926

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