How Should a Taxpayer Decide Whether to Take the Standard

question 40

Essay

How should a taxpayer decide whether to take the standard deduction or claim itemized deductions?

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Definitions:

Predictive Validity

Refers to the extent to which a score on a scale or test predicts future performance or outcomes on a related measure.

Nominal Scale

A scale of measurement with two or more categories that have no numerical (less than, greater than) properties.

Discriminant Validity

The extent to which a measurement does not correlate with measurements from different constructs, ensuring distinctiveness among variables.

Predictive Validity

The extent to which a score on a scale or test predicts scores on some criterion measure.