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?
A. The trend of average income of self-employed individuals over the past few years compared to that of the rest of the group.
B. The difference between average annual taxes paid by a self-employed individual and a working professional.
C. The average tax fraud committed by a self-employed individual versus a working professional.
D. The diversity of demographics represented in the group versus that of the nation.
E. The number of women in the group who were working professionals versus self-employed.
To determine the extent of tax fraud, the Internal Revenue Service audited the current year tax returns of a random set
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