Question: The IRS wants to develop a method for detecting whether or not individuals have overstated their deductions for charitable contributions on their tax returns. To


The 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 Raw Data tab listing the adjusted gross income (AGI) and charitable contributions for 720 taxpayers whose returns were audited and found to be correct. 1. Estimate a linear regression model of Charitable Contributions as a function of AGI, taxpayer age, number of dependents in household and filing status
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