a tax auditor reviewing a tax return looks for several kinds of problems, including (1) mistakes made in…

a tax auditor reviewing a tax return looks for several kinds of problems, including (1) mistakes made in entering or calculating numbers on the tax return and (2) places where the taxpayer reported income dishonestly. discuss whether each problem involves random or systematic errors. does \mistakes made in entering or calculating numbers on the tax return\ involve random or systematic error? explain. a. this involves a random error because unintentional mistakes are unpredictable and random. b. this involves a random error because most taxpayers enter random numbers to hide their real income. c. this involves a systematic error because the mistake makes the taxes too high by the same amount. d. this involves a systematic error because the tax return form is part of the tax system. does \places where the taxpayer reported income dishonestly\ involve random or systematic error? explain. a. this involves a systematic error due to failure to report hourly pay. b. this involves a random error because there is no way to predict dishonesty before it happens. c. this involves a systematic error due to underreporting of income. d. this involves a random error because most people are honest about their income.

a tax auditor reviewing a tax return looks for several kinds of problems, including (1) mistakes made in entering or calculating numbers on the tax return and (2) places where the taxpayer reported income dishonestly. discuss whether each problem involves random or systematic errors. does \mistakes made in entering or calculating numbers on the tax return\ involve random or systematic error? explain. a. this involves a random error because unintentional mistakes are unpredictable and random. b. this involves a random error because most taxpayers enter random numbers to hide their real income. c. this involves a systematic error because the mistake makes the taxes too high by the same amount. d. this involves a systematic error because the tax return form is part of the tax system. does \places where the taxpayer reported income dishonestly\ involve random or systematic error? explain. a. this involves a systematic error due to failure to report hourly pay. b. this involves a random error because there is no way to predict dishonesty before it happens. c. this involves a systematic error due to underreporting of income. d. this involves a random error because most people are honest about their income.

Answer

Brief Explanations:

  1. Mistakes in entering or calculating numbers on a tax - return are unintentional. Unintentional mistakes are unpredictable and random, which is the characteristic of a random error.
  2. Dishonestly reporting income is a form of underreporting income. Underreporting income is a consistent behavior (systematic) as taxpayers who are dishonest about their income will likely do it in a non - random, consistent way to reduce their tax liability.

Answer:

  1. A. This involves a random error because unintentional mistakes are unpredictable and random.
  2. C. This involves a systematic error due to underreporting of income.