The average tax refund received by taxpayers who use tax preparation services is about 50 percent higher than the ave...

DevinFuller on November 6, 2023

Can you help me diagram?

For whatever reason I chose E over A. A looked fine to me but with the different elements in the stimulus I didnt take them as being the same when we diagram. IE 50% higher and larger refund. How can I avoid this mistake and see A as the correct answer moving forward? Thank you!

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Emil-Kunkin on November 26, 2023

I wouldn't really diagram this question, rather, I would try to understand the flaw as deeply as possible. Here, the argument is wrong because it ignores the possibility of selection bias: maybe people who know they will get a refund are more likely to use tax preparation services in the first place. This is the same issue in A, maybe high income people were more likely to invest in stocks in the first place.

E on the other hand doesn't have selection bias, and I think is actually a valid argument.