For the Years 2010 Through 2014 (Inclusive)Max,a Surgeon,has Been Involved

question 41

Multiple Choice

For the years 2010 through 2014 (inclusive) Max,a surgeon,has been involved in bowling competitions.Only in 2013 and 2014 did his revenue exceed the expenses from the activity.Which statement is correct?

• A)The activity is a business.The IRS cannot prove it is a hobby.
• B)The activity is a hobby.Max cannot prove it is a business.
• C)The activity is presumed to be a business.However,the IRS may prove it is a hobby.
• D)The activity is presumed to be a hobby.However,Max may prove it is a business.

---

Definitions:

Significant Correlation

A statistical relationship between two variables that is unlikely to be due to chance at a specified level of significance.

Causality

The relation between a cause and its effect, often established through a combination of observational studies and experiments.

Three Variables

Refers to any analytic scenario, model, or experiment that involves exactly three different variables affecting outcomes.

Compounding Periods

Compounding Periods refer to the frequency with which interest is added to the principal balance of an investment or loan, affecting the total interest earned or paid.