In 2012, Max Is 85 Years of Age and Single

question 45

Multiple Choice

In 2012, Max is 85 years of age and single. He received Social Security payments totaling $14,000 (this includes Medicare premium of $600) , dividend and interest income of $21,000, a pension of $30,000 and a taxable IRA benefits of $16,000. What is Max's adjusted gross income for 2012?

• A) $80,400.
• B) $78,900.
• C) $78,390
• D) $67,000

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Definitions:

Type I Error

The incorrect rejection of a true null hypothesis, also known as a false positive.

Type II Error

The error of failing to reject a false null hypothesis, also known as a false negative.

Decision Maker

An individual or group responsible for making choices after evaluating options, considering consequences, and selecting the best course of action.

Null Hypothesis

A statement for a statistical test that proposes there is no effect or no difference, serving as the default assumption to test against.