What Is the Average Tax Rate

question 79

Multiple Choice

What is the average tax rate?

• A)It is calculated by dividing the total income taxes paid by the total income.
• B)It is the extra tax you have to pay on top of your regular income tax.
• C)It is the tax rate levied on your last dollar of taxable income.
• D)33%

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Definitions:

Computational Formula

A formula used to compute statistical measures that often simplifies the arithmetic process.

Variance

A measure of the dispersion or how spread out numbers are in a dataset.

Interquartile Range

A measure of statistical dispersion, representing the difference between the 25th and 75th percentiles of a dataset.

Variance

A measure of the dispersion or spread of a set of data points, calculated as the average of the squared deviations from the mean.