Data are given below on the adjusted gross income x and the amount of itemized deductions taken by taxpayers. Data were reported in thousands of dollars. With the estimated regression equation  = 5.16 + .14x, the point estimate of a reasonable level of total itemized deductions for a taxpayer with an adjusted gross income of $57.5 thousand is $13,210. Adjusted Gross Income ($1000s)  22, 27, 32, 48, 65, 85, 120   Reasonable Amount of Itemized Deductions ($1000s) 9.6, 9.6,10.1, 11.1, 11.5, 17.7, 23.5  Develop a 95% confidence interval for the mean amount of total itemized deductions (in thousands of dollars) for all taxpayers with an adjusted gross income of $57,500. (Round your answers to two decimal places. $ (  ,   )

Data are given below on the adjusted gross income x and the amount of itemized deductions taken by taxpayers. Data were reported in thousands of dollars. With the estimated regression equation  = 5.16 + .14x, the point estimate of a reasonable level of total itemized deductions for a taxpayer with an adjusted gross income of $57.5 thousand is $13,210.

Adjusted Gross Income ($1000s) 

22, 27, 32, 48, 65, 85, 120  

Reasonable Amount of Itemized Deductions ($1000s)

9.6, 9.6,10.1, 11.1, 11.5, 17.7, 23.5 

1. Develop a 95% confidence interval for the mean amount of total itemized deductions (in thousands of dollars) for all taxpayers with an adjusted gross income of $57,500. (Round your answers to two decimal places.
   $ (  ,   )
   
   
2. Develop a 95% prediction interval estimate for the amount of total itemized deductions (in thousands of dollars) for a particular taxpayer with an adjusted gross income of $57,500. (Round your answers to two decimal places.)
   $ (  ,   )
   
   
3. Use your answer to part (b) to give the IRS agent a guideline as to the amount of total itemized deductions (in thousands of dollars) a taxpayer with an adjusted gross income of $57,500 could claim before an audit is recommended. (Round your answer to two decimal places.)