avik629 wrote:
I support ans D.
What if the sample group is not representative of the complete nation?
As indicated in answer choice D. Maybe fraud by self employed account for majority of the sample group but not nation, which is more relevant for IRS.
I think you missed the "
For the group above". In fact even I missed it.
To determine the extent of tax fraud, the Internal Revenue Service audited the current year tax returns of a random set of 1000 individuals. Even though only 10% of the individuals in the group were self-employed (other 90% were working professionals), they accounted for 50% of the fraudulent cases.
For the group above, which of the following would be most useful in assessing whether tax fraud by self-employed individuals may be responsible for majority of the money that the IRS loses every year?
1. The trend of average income of self-employed individuals over the past few years compared to that of the rest of the group -
The trend is not required as we are having the actual data of the group - OFS - Incorrect2. The difference between average annual taxes paid by a self-employed individual and a working professional.
If we don't calculate the average, one person might be a one off case (may be either of the extreme ) so we cannot determine - Incorrect3. The average tax fraud committed by a self-employed individual versus a working professional -
For the group, this is correct4. The diversity of demographics represented in the group versus that of the nation.
The question is for the group - So incorrect5. The number of women in the group who were working professionals versus self-employed.
Completely OFS