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|
|Made some or all of tax payment||6||39||45|
Χ2 = 44.000 (from SPSS), df=1