An Economist Noticed That Nations with More TV Sets Have

question 7

Multiple Choice

An economist noticed that nations with more TV sets have higher life expectancies.He established with a scatterplot a high positive correlation between length of life and number of TV sets.Find the lurking variable,if there is one.

• A)Sofa
• B)TV sets brands
• C)Popcorn
• D)Wealth of the nation
• E)No lurking variable

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Definitions:

Saving

The process of setting aside a portion of current income for future use or for investment purposes.

Consumption Tax

Taxes applied on spending on goods and services, such as sales tax or Value Added Tax (VAT).

Income Tax

A tax levied by governments on individuals' or entities' income. The rate can vary based on income levels or earnings.

Average Tax Rate

The proportion of total income that is paid as tax, calculated by dividing the total amount of taxes paid by the taxpayer's total income.