Which of the Following Is a True Statement

question 6

Multiple Choice

Which of the following is a true statement?

• A) Bunching itemized deductions is an illegal method of tax avoidance.
• B) Before any applicable phase-out, the deduction for personal and dependency exemptions is $4,050 times the number of exemptions.
• C) The standard deduction is increased for taxpayers who are blind or deaf at year-end.
• D) A married couple is only entitled to one addition to their standard deduction even if both spouses are both over age 65.
• E) All of the choices are true.

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Definitions:

Predictor Variables

Variables in statistical models that are used to predict or estimate the value of another variable, known as the response variable.

Regression Analysis

A statistical method for modeling the relationship between a dependent variable and one or more independent variables.

Response Variables

Variables that measure the outcome of a study or experiment, showing the effect of manipulations in predictor variables.

Multicollinearity

A situation where two or more independent variables in a multiple regression model show a high degree of correlation.