PT102.S4.Q2

PrepTest 102 - Section 4 - Question 2

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Twenty professional income-tax advisors were given identical records from which to prepare an income-tax return. ███ ████████ ████ ███ █████ ████ ████ ████ ███████ ████ ██████████ ███████ ████████ ██ █ █████████ █████████ ██ ███ ██ ███ █████████ ███ ███████ ██████ ████ ████ ██████ ███ ████ ███ ███ ███████████ ████████

Summary

20 pro income-tax advisors were given identical records to prepare an income-tax return. None of the completed tax returns were the exact same as each other. Only 1 out of the 20 returns was correct.

Very Strongly Supported Conclusions

Not every pro income-tax advisor will produce the same tax return from the same records.

Being a pro income-tax advisor does not guarantee that one will always produce a correct tax return.

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2.

If the information above is ████████ █████ ███ ██ ███ █████████ ███████████ ███ ██ ████████ █████ ██ ███ █████ ██ ███

a

Only one out ██ █████ ██████ ██████████ ███████ ████████ ██ ███ █████ ████████████ ██████████ ███████ ████ ██ ████████

We only know about one tax return prepared by each of the 20 advisors. We don’t have any information about how advisors would perform across multiple different tax returns.

1%
b

The fact that █ ███ ██████ ███ ████ ████████ ██ █ ████████████ ██████████ ███████ ████████ ██ █████████ ████ ███ ███ ██████ ███ ████ █████████ █████████

This is supported by the fact that only 1 out of the 20 returns was correct. So the other 19 returns, even though they were prepared by a pro income-tax advisor, were wrong. This shows being prepared by a pro advisor does not guarantee a return will be correct.

97%
c

In order to ██████ ████ ███ ███████ ███ ████████ ██ ██ █████████ ██ ████ ████████████ ██████████ ████████ ██ ███████ █████

The stimulus doesn’t give us any evidence about what’s required for being correct.

0%
d

All professional income-tax ████████ ████ ████████ ██ ██ █████ ████ ██ ███ ███ ███████ ████ ████████

We don’t have evidence that every pro advisor makes mistakes. All we know is that 19 out of the 20 made a mistake on one tax return. But the one advisor who got the return correct might never make mistakes.

2%
e

People are more ██████ ██ ████ ██ ███████████ ████████ ███ ██████ ██ ████ ███████ █████ ███ ███ ███████ ████ ██ ████ ████ █ ████████████ ██████████ ████████

The stimulus doesn’t present evidence concerning a comparison between self-prepared returns and pro-prepared returns.

0%

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