Let y denote the average amount claimed for itemized deductions on a tax return reporting x dollars
Question:
Let y denote the average amount claimed for itemized deductions on a tax return reporting x dollars of income. According to Internal Revenue Service data, y is a linear function of x. Moreover, in a recent year income tax returns reporting $20,000 of income averaged $729 in itemized deductions, while returns reporting $50,000 averaged $1380.
(a) Determine y as a function of x.
(b) Graph this function in the window [0, 75000] by [0, 2000].
(c) Give an interpretation of the slope in applied terms.
(d) Determine graphically the average amount of itemized deductions on a return reporting $75,000.
(e) Determine graphically the income level at which the average itemized deductions are $1600.
(f) If the income level increases by $15,000, by how much do the average itemized deductions increase?
Step by Step Answer:
Calculus And Its Applications
ISBN: 9780134437774
14th Edition
Authors: Larry Goldstein, David Lay, David Schneider, Nakhle Asmar