Statistics: Informed Decisions Using Data (4th Edition)

Published by Pearson
ISBN 10: 0321757270
ISBN 13: 978-0-32175-727-2

Chapter 2 - Review - Review Exercises - Page 121: 10b

Answer

Yes, the tax shares are diverging.

Work Step by Step

To construct a time-series plot, the following steps need to be followed: Step 1: Enter the data in a new Excel sheet. Step 2: Select the data and choose Charts→Line. Click OK. A time-series plot shows the trend or movement of the variable under observation over a period of time. Its value constantly changes with respect to time. The tax shares of both groups are following two very different paths. Due to this large difference, it can be said that the tax shares of these groups are diverging.
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