Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Internal Revenue Service ( IRS ) wants to develop a method for detecting whether or not individuals have overstated their deductions for charitable contributions

The Internal Revenue Service (IRS) wants to develop a method for detecting whether or not individuals have overstated their deductions for charitable contributions on their tax returns. To assist in this effort, the IRS supplied data found in the worksheet titled "Problem 1" listing the adjusted gross income (AGI), Gender, Education Level, and Charitable Contributions (CC) for 50 tax payers whose returns were audited.
a) Find the mean, median, mode (up to three), standard deviation, min, and max. values for the AGI and CC. Provide a short discussion on the values of the mean and the median.
b) Create a box plot for the CC values. Are you able to identify any outliers by looking at the box plot?
c) Calculate the z-score for each CC value. Are you able to identify any outliers by looking at the zscores?
d) Create a frequency table and chart for the AGI values using $10,000 increments starting from the min value to the max value. Provide a short discussion on your chart.
e) Prepare a scatter plot of the data between the AGI and CC for female and male taxpayers on the same chart with different colors. Comment on your results.
f) How might the IRS use these results to identify returns with unusually high charitable contributions? Is it a good idea to just look for outliers in CC values as we did in parts (b) and (c)? Provide a short discussion.
This is what the excel data looks like i was able to do most of a and c but im confused on how to do the rest in excel. I also think i did the modes.multi wrong since it cake up with the same number for all of them.
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Software Audit Guide

Authors: John W. Helgeson

1st Edition

0873897730, 978-0873897730

More Books

Students also viewed these Accounting questions