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Digiron [165]
3 years ago
11

Many tax professionals and advisors recommend adjusting your W-4 allowances so that...

Advanced Placement (AP)
1 answer:
Maru [420]3 years ago
3 0
<span>They advise that you decrease the number of allowances on your W-4. The more allowances that you have, the less taxes you pay during the year, but this can also decrease your end-of-the year refund greatly. The goal is to take as much tax out of each paycheck as needed to get a refund at the end of the year. A person’s job looks at these allowances to determine how much taxes an employee needs to pay each paycheck.</span>
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Z score is a score used in mathematics to determine by how many standard deviations the raw score is above or below the mean. The z score is given by:

z=\frac{x-\mu}{\sigma}\\\\where\ x=raw\ score, \mu=mean,\sigma=standard\ deviation. \\\\For\ a\ sample\ size(n):\\\\  z=\frac{x-\mu}{\sigma/\sqrt{n} }

The area under the curve is dependent on the z score. The higher the z score, the higher the area under curve and the lower the z score, the lower the area under curve.

a) The area under curve (z score) is inversely proportional to the standard deviation. If the standard deviation is increased, the z score decreases thereby reducing the area under the curve.

b) If the standard deviation is decreased, the z score increases thereby increasing the area under the curve.

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