Employees Claim Withholding Allowances on Form W-4

question 23

Multiple Choice

Employees claim withholding allowances on Form W-4. For each withholding allowance claimed, their withholding base is reduced by what amount for calendar year 2015?

• A) $3,850.
• B) $3,900.
• C) $3,950.
• D)$4,000.

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Definitions:

Critical Value

A point on the scale of the test statistic beyond which we reject the null hypothesis, significant in hypothesis testing.

Level of Significance

The probability of rejecting the null hypothesis in a statistical test when it is actually true; a measure of the risk of making a Type I error.

Proportions

A statistical measure that reflects the size of a part compared to the whole, typically expressed as a fraction or a percentage.

Level of Significance

The probability of rejecting the null hypothesis in a statistical test when it is actually true, typically set prior to conducting the test.