Refer to the Information Provided in Table 19 -Refer to Table 19

question 138

Multiple Choice

Refer to the information provided in Table 19.1 below to answer the question that follows.
Table 19.1 $$\begin{array} { c c c c } \text { Total Income} &\text { Total Taxes } & \begin{array} { c } \text { Average Tax } \\\text { Rate }\end{array} & \begin{array} { c } \text { Marginal Tax } \\\text { Rate }\end{array} \\\hline \$ 5,000 & \$ 750 & 0.15 & 0.15 \\\$ 10,000 & \$ 1,200 & 0.12 & 0.09 \\\$ 15,000 & \$ 1,500 & 0.10 & 0.06 \\\$ 20,000 & \$ 1,600 & 0.08 & 0.0 \\\hline\end{array}$$
-Refer to Table 19.1. The tax rate structure in this example is

• A) proportional.
• B) progressive.
• C) regressive.
• D) marginal.

---

Definitions:

Larger Sample

Refers to increasing the number of observations in a sample to reduce random sampling error and make the sample statistics more representative of the population.

Sample Variance

A measure of the dispersion or spread in a set of sample data, calculated by averaging the squared deviations from the sample mean.

Sample Median

The value separating the higher half from the lower half of a data sample.

Interval Estimate

A type of estimate that provides a range of values within which a population parameter is expected to lie, often associated with a confidence level.