Auditing Itemized Tax Deductions. To the Internal Revenue Service, the reasonableness of total itemized deductions depends on the taxpayer’s adjusted gross income. Large deductions, which include charity and medical deductions, are more reasonable for taxpayers with large adjusted gross incomes. If a taxpayer claims larger than average itemized deductions for a given level of income, the chances of an IRS audit are increased. Data (in thousands of dollars) on adjusted gross income and the average or reasonable amount of itemized deductions follow.
- a. Develop a
scatter diagram for these data with adjusted gross income as the independent variable. - b. Use the least squares method to develop the estimated regression equation.
- c. Predict the reasonable level of total itemized deductions for a taxpayer with an adjusted gross income of $52,500. If this taxpayer claimed itemized deductions of $20,400, would the IRS agent’s request for an audit appear justified? Explain.
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Chapter 14 Solutions
MindTap Business Statistics, 1 term (6 months) Printed Access Card for Anderson/Sweeney/Williams/Camm/Cochran's Essentials of Statistics for Business and Economics, 8th
- Population Genetics In the study of population genetics, an important measure of inbreeding is the proportion of homozygous genotypesthat is, instances in which the two alleles carried at a particular site on an individuals chromosomes are both the same. For population in which blood-related individual mate, them is a higher than expected frequency of homozygous individuals. Examples of such populations include endangered or rare species, selectively bred breeds, and isolated populations. in general. the frequency of homozygous children from mating of blood-related parents is greater than that for children from unrelated parents Measured over a large number of generations, the proportion of heterozygous genotypesthat is, nonhomozygous genotypeschanges by a constant factor 1 from generation to generation. The factor 1 is a number between 0 and 1. If 1=0.75, for example then the proportion of heterozygous individuals in the population decreases by 25 in each generation In this case, after 10 generations, the proportion of heterozygous individuals in the population decreases by 94.37, since 0.7510=0.0563, or 5.63. In other words, 94.37 of the population is homozygous. For specific types of matings, the proportion of heterozygous genotypes can be related to that of previous generations and is found from an equation. For mating between siblings 1 can be determined as the largest value of for which 2=12+14. This equation comes from carefully accounting for the genotypes for the present generation the 2 term in terms of those previous two generations represented by for the parents generation and by the constant term of the grandparents generation. a Find both solutions to the quadratic equation above and identify which is 1 use a horizontal span of 1 to 1 in this exercise and the following exercise. b After 5 generations, what proportion of the population will be homozygous? c After 20 generations, what proportion of the population will be homozygous?arrow_forwardCholesterol Cholesterol in human blood is necessary, but too much can lead to health problems. There are three main types of cholesterol: HDL (high-density lipoproteins), LDL (low-density lipoproteins), and VLDL (very low-density lipoproteins). HDL is considered “good” cholesterol; LDL and VLDL are considered “bad” cholesterol. A standard fasting cholesterol blood test measures total cholesterol, HDL cholesterol, and triglycerides. These numbers are used to estimate LDL and VLDL, which are difficult to measure directly. Your doctor recommends that your combined LDL/VLDL cholesterol level be less than 130 milligrams per deciliter, your HDL cholesterol level be at least 60 milligrams per deciliter, and your total cholesterol level be no more than 200 milligrams per deciliter. (a) Write a system of linear inequalities for the recommended cholesterol levels. Let x represent the HDL cholesterol level, and let y represent the combined LDL VLDL cholesterol level. (b) Graph the system of inequalities from part (a). Label any vertices of the solution region. (c) Is the following set of cholesterol levels within the recommendations? Explain. LDL/VLDL: 120 milligrams per deciliter HDL: 90 milligrams per deciliter Total: 210 milligrams per deciliter (d) Give an example of cholesterol levels in which the LDL/VLDL cholesterol level is too high but the HDL cholesterol level is acceptable. (e) Another recommendation is that the ratio of total cholesterol to HDL cholesterol be less than 4 (that is, less than 4 to 1). Identify a point in the solution region from part (b) that meets this recommendation, and explain why it meets the recommendation.arrow_forward
- Functions and Change: A Modeling Approach to Coll...AlgebraISBN:9781337111348Author:Bruce Crauder, Benny Evans, Alan NoellPublisher:Cengage LearningLinear Algebra: A Modern IntroductionAlgebraISBN:9781285463247Author:David PoolePublisher:Cengage Learning