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Statistics Assignment | Professional Writing Services

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January 31st, 2020

Consider an economy with a flat-rate tax system. Each dollar of income over $5000 is taxed at 20%. (Income below $5000 is tax-free.) In general, T = .2(Y − 5000) = −1000 + .2Y, where T is taxes and Y is income. Suppose that the population mean income is $20,000 and that the population standard deviation of incomes is $8000. All families have at least $5000 of income.

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a. find the mean of T.

b. Find the standard deviation of T.

c. If the population contains 20 million families, what is the government’s total tax revenue?

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