Which of the Following Statements Is/are Correct

question 50

Multiple Choice

Which of the following statements is/are correct?
I.Terry's divorce decree provides that his ex-wife is to pay him alimony of $500 per month until their son reaches age 18 or dies, at which time the payment will be reduced to $300. Terry recognizes $300 of alimony income each month.
II.Jerry is the manager of Northgate apartments. He is required to live in an apartment in the complex that normally rents for $600 per month. Jerry must recognize $600 per month as income from his management job.
III.Lorraine's aunt dies during the current year. The aunt's $20,000 life insurance policy names Lorraine as the beneficiary. Lorraine receives $20,000 from the policy in December. Lorraine must include the $20,000 in her gross income.
IV.Helen receives a teaching assistantship from the music department that pays her $300 per month. Helen must work as a lab assistant 15 hours per week. Helen's total direct education costs are $9,000. Helen includes the $300 per month in her income.
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• A)Statements I and IV are correct.
• B)Statements II and III are correct.
• C)Statements II and IV are correct.
• D)Statements I and III are correct.

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Definitions:

Type II Error

Occurs in hypothesis testing when a false null hypothesis is not rejected, also known as a false negative.

Null Hypothesis

A theory proposing that no meaningful distinction exists between certain groups, attributing any detected variations to random sampling or mistakes in the experiment.

Treatment Population

A group of individuals receiving the treatment or intervention in a study to assess its effectiveness.

Control Population

A group in an experimental study that does not receive the treatment and is used as a benchmark to measure how the other tested groups compare.