A Tax Return with a Large Casualty Loss Would Be

question 58

Multiple Choice

A tax return with a large casualty loss would be most likely selected for audit through:

• A)The Discriminant Function System
• B)Information from an informant
• C)Information from another governmental agency
• D)The Taxpayer Compliance Measurement Program
• E)None of the above

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Definitions:

Regression Model

A mathematical model that estimates the relationship between a dependent variable and one or more independent variables.

Independent Variables

Elements in a research or modeling scenario that are deliberately modified to examine their influence on variables that are affected by them.

Stepwise Regression

A method of regression analysis that involves adding or removing predictors based on their statistical significance in a step-by-step manner to identify a model with optimal predictors.

P-values

A measure in statistical hypothesis tests representing the probability of observing the given or more extreme results assuming the null hypothesis is true.