Many countries but not the United States have a value added
Many countries (but not the United States) have a “value-added tax” that is paid by businesses based on how much value they add to a product (e.g., the difference between sales revenues and the cost of materials). This is different from a sales tax because the consumer does not see it added on at the cash register. Consider the VAT (value-added tax) percentages for various countries, as shown in Table 4.3.2.
a. Draw a histogram of this data set and briefly describe the shape of the distribution.
b. Find the VAT tax level of the average country.
c. Find the median VAT tax level.
d. Compare the average and median. Is this what you expect for a distribution with this shape?
e. Draw the cumulative distribution function.
f. What VAT tax level is at the 20th percentile? The 80th percentile?
g. What percentile is a VAT tax of 16%?
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