Question 4 [Basic hypothesis tests]

The data in Table 3 below lists the corporation tax rates for selected EU and non-EU countries.

European Union Countries

25, 33.99, 10, 20, 12.5, 19, 23.5, 20, 20, 33.3, 30.175, 26, 10, 12.5, 27.5, 15, 15, 28.59, 35, 20, 27, 19, 12.5, 16, 15, 17, 30, 22, 21

Non-European Union Countries

10, 24, 10, 15, 20, 12.5, 10, 9, 20, 15, 25, 20, 23

Table 3: Data on Corporation Tax rates for Question 4

(a) Read this data into R and list the R commands used.

(b) Test for a difference in the mean corporation tax rate between EU and non-EU countries.

(c) Test for a difference in the variance of the corporation tax rate between EU and non-EU countries.

(d) Based on the findings in part (c-d) what are the implications of Brexit upon the rate of UK corporation tax?

(e) What implications might the current coronavirus pandemic have upon the data in Table 3?