Different countries have different taxation strategies: Some tax income more heavily than others, while others concentrate on goods and services taxes. Consider the relative size of goods and services taxes for selected countries’ international tax rates, as presented in Table 5.5.10. This relative size is measured in two ways: total goods and services taxes as a percentage of overall economic activity (gross domestic product) and as a percentage of all taxes collected by that country.
a. Find the standard deviation of each variable.
b. Find the range of each variable.
c. Find the coefficient of variation of each variable.
d. Compare each of these variability measures. Which variability measure is the most similar from one variable to the other? Why?