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How Are the Size of the Tax and the Deadweight

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How are the size of the tax and the deadweight loss of a tax related


Definitions:

Degrees of Freedom

The number of independent pieces of information in a statistical calculation, often equal to the sample size minus the number of parameters estimated.

Categories

Groups or classes into which data or objects are organized based on shared characteristics.

Chi-square

A statistical test used to determine if there is a significant association between two categorical variables.

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