Howard, Age 82, Dies on January 2, 2012

question 11

True/False

Howard, age 82, dies on January 2, 2012.On Howard's final income tax return, the full amount of the basic and additional standard deductions will be allowed even though Howard lived for only 2 days during the year.

---

Definitions:

Expected Value

The anticipated value of a variable, computed as the sum of all possible values each multiplied by the probability of its occurrence.

Fair Bet

A betting proposition where the expected gains or losses are theoretically equal, implying no advantage to either side.

Zero Sum Game

A situation in-game theory where one participant's gain or loss is exactly balanced by the losses or gains of the other participants.

Utility

The measure of satisfaction or value that an individual derives from consuming goods and services.