Which of the Following Would Indicate That a Tax Is

question 130

Multiple Choice

Which of the following would indicate that a tax is regressive?

• A)High-income people pay $5,000 in taxes;low-income people pay $2,000.
• B)Both high-income and low-income people pay $200 each.
• C)High-income people pay 20 percent of their income in taxes;low-income people pay 10 percent.
• D)Both high-income and low-income people pay 10 percent of their income in taxes.
• E)Low-income people are exempt from the tax.

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Definitions:

Chebyshev's Theorem

A statistical theorem stating that for any set of data, the proportion of results that fall within k standard deviations from the mean is at least 1-1/k^2 for k>1.

Empirical Rule

A rule that can be used to compute the percentage of data values that must be within one, two, and three standard deviations of the mean for data that exhibit a bell-shaped distribution.

Sample Space

The entire set of possible outcomes in a probability experiment or situation.

Sample Point

A single outcome from a statistical experiment.