Alex Is 37 Years Old,single and Employee of Ellis Company

question 30

Multiple Choice

Alex is 37 years old,single and employee of Ellis Company.
I.If Alex is an active participant in the company's pension plan,he is allowed to make a contribution to his IRA account only if his adjusted gross income is less than $59,000.
II.If Alex is an active participant in the company's pension plan,and has adjusted gross income of $64,000,he is allowed to contribute $5,500 to his IRA account,but he is only allowed a deduction of $2,750 for the contribution because his adjusted gross income is between $59,000 - $69,000.

• A)Only statement I is correct
• B)Only statement II is correct
• C)Both statements are correct.
• D)Neither statement is correct.

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Definitions:

Least Squares

A mathematical method used to find the best-fitting line through a set of points by minimizing the sum of the squares of the distances from the points to the line.

Regression Line

A straight line that best fits the data points on a scatter plot, showing the relationship between two variables.

Models

Replicas or systems that represent, simulate, or describe complex phenomena for the purpose of analysis or prediction.