On the Most Recent Tax Cut Proposal,a Random Sample of Democrats

question 32

Multiple Choice

On the most recent tax cut proposal,a random sample of Democrats and Republicans in the Congress cast their votes as follows: Suppose,the Chi-square test of independence is performed and the null hypothesis is rejected that the vote on the issue and party affiliation are independent.Provide a one-sentence interpretation of the outcome of the test.

• A)The party affiliation is not independent of the votes on the tax cut proposal.
• B)How votes are cast on the tax cut proposal are independent of the party affiliation.
• C)Party affiliation does not affect how individuals vote on the tax cut proposal.
• D)There is insufficient evidence to determine a correlation between party affiliation and the congressman's opinion on the tax cut proposal.

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Definitions:

Consumption Tax

A tax on the purchase of goods and services, levied at the point of consumption.

High Income

Refers to earnings that significantly exceed the average or median income level within a specific region, industry, or demographic segment.

Double-Taxation

The taxation of the same income or financial transaction at two different levels, such as corporate profits and then again when distributed as dividends to shareholders.

Saving

Saving refers to the portion of income that is not spent on current consumption but preserved for future use, often by depositing in banks or investing.