To determine the extent of tax fraud, the Internal Revenue Service audited the current year tax returns of a random set

This topic has expert replies
Moderator
Posts: 7187
Joined: Thu Sep 07, 2017 4:43 pm
Followed by:23 members

Timer

00:00

Your Answer

A

B

C

D

E

Global Stats

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.


OA C

Source: e-GMAT