Estimating income tax based on dividends is also not straightforward, due in part to Australia’s franking credit scheme. Mike is looking to simplify total annual tax projections for a share portfolio based simply on the share portfolio's current value. To do this, he wishes to determine if there is any statistically significant linear relationship between the two. Mike has randomly sampled 30 individuals with share portfolios over AUD$100,000 and mapped the assessed value of the portfolio (in AUD $1000) to the total taxes paid on that amount (in AUD$1). Mike's data is in the table below. Assessed Value Taxes 426.1 5014 368.8 3698 309.8 3691 373.9 5189 445.7 4455 505.1 5189 342.3 3416 343.6 3931 432.3 4393 329.2 3267 291.2 2871 399.3 4013 392.7 4728 482.2 4885 480.6 4888 390.8 3917 371.6 3738 311.9 3098 343.7 3633 304.7 3538 274.6 3427 457.1 4633 231.5 4009 450.5 4565 510.1 5946 308.4 3045 348.8 3504 410.4 3375 276.9 2706 337.5 4299 e. Perform a residual analysis and evaluate the regression assumptions. The residual plot shows (a linear pattern/a nonlinear pattern/no pattern) and (roughly equal/ clearly unequal) spread. Plotting the residuals in collection order (is necessary and does not show a cyclical pattern/ is necessary and shows a cyclical pattern/ is not necessary). . f. At the 0.05 level of significance, is there evidence of a linear relationship between total taxes and portfolio value? State the null and alternative hypotheses. H0: ___ H1: ___ (Type integers or decimals. Do not round.) Determine the test statistic. tSTAT=_________ (Round to two decimal places as needed.) Determine the p-value. The p-value is_____. (Round to three decimal places as needed.) State the conclusion. _________ H0. There _________ evidence of a linear relationship between total taxes and portfolio value. g. Which of the following is true from the data and analysis in this question? A. There is a positive relationship between total taxes and portfolio value. However, it cannot be stated that a higher portfolio value causes higher total taxes. B. There is a negative relationship between total taxes and portfolio value. However, it cannot be stated that a lower portfolio value causes higher total taxes. C. A higher portfolio value causes higher total taxes. D. There is no relationship between portfolio value and total taxes. E. A lower portfolio value causes higher total taxes. F. None of the above.

Estimating income tax based on dividends is also not straightforward, due in part to Australia’s franking credit scheme. Mike is looking to simplify total annual tax projections for a share portfolio based simply on the share portfolio's current value. To do this, he wishes to determine if there is any statistically significant linear relationship between the two. Mike has randomly sampled 30 individuals with share portfolios over AUD$100,000 and mapped the assessed value of the portfolio (in AUD $1000) to the total taxes paid on that amount (in AUD$1). Mike's data is in the table below. Assessed Value Taxes 426.1 5014 368.8 3698 309.8 3691 373.9 5189 445.7 4455 505.1 5189 342.3 3416 343.6 3931 432.3 4393 329.2 3267 291.2 2871 399.3 4013 392.7 4728 482.2 4885 480.6 4888 390.8 3917 371.6 3738 311.9 3098 343.7 3633 304.7 3538 274.6 3427 457.1 4633 231.5 4009 450.5 4565 510.1 5946 308.4 3045 348.8 3504 410.4 3375 276.9 2706 337.5 4299 e. Perform a residual analysis and evaluate the regression assumptions. The residual plot shows (a linear pattern/a nonlinear pattern/no pattern) and (roughly equal/ clearly unequal) spread. Plotting the residuals in collection order (is necessary and does not show a cyclical pattern/ is necessary and shows a cyclical pattern/ is not necessary). . f. At the 0.05 level of significance, is there evidence of a linear relationship between total taxes and portfolio value? State the null and alternative hypotheses. H0: _ H1: _ (Type integers or decimals. Do not round.) Determine the test statistic. tSTAT=_______ (Round to two decimal places as needed.) Determine the p-value. The p-value is_. (Round to three decimal places as needed.) State the conclusion. _ H0. There ___ evidence of a linear relationship between total taxes and portfolio value. g. Which of the following is true from the data and analysis in this question? A. There is a positive relationship between total taxes and portfolio value. However, it cannot be stated that a higher portfolio value causes higher total taxes. B. There is a negative relationship between total taxes and portfolio value. However, it cannot be stated that a lower portfolio value causes higher total taxes. C. A higher portfolio value causes higher total taxes. D. There is no relationship between portfolio value and total taxes. E. A lower portfolio value causes higher total taxes. F. None of the above.

Name: Estimating income tax based on dividends is also not straightforward,
Uploaded: 2024-03-20T06:38:58.000Z
Channel: Bartleby
Description: Estimating income tax based on dividends is also not straightforward, due in part to Australia’s franking credit scheme. Mike is looking to simplify total annual tax projections for a share portfolio based simply on the share portfolio's current

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

See similar textbooks

Related questions

Concept explainers

Topic Video

Question

Mike has randomly sampled 30 individuals with share portfolios over AUD$100,000 and mapped the assessed value of the portfolio (in AUD $1000) to the total taxes paid on that amount (in AUD$1). Mike's data is in the table below.

Assessed Value	Taxes
426.1	5014
368.8	3698
309.8	3691
373.9	5189
445.7	4455
505.1	5189
342.3	3416
343.6	3931
432.3	4393
329.2	3267
291.2	2871
399.3	4013
392.7	4728
482.2	4885
480.6	4888
390.8	3917
371.6	3738
311.9	3098
343.7	3633
304.7	3538
274.6	3427
457.1	4633
231.5	4009
450.5	4565
510.1	5946
308.4	3045
348.8	3504
410.4	3375
276.9	2706
337.5	4299

e. Perform a residual analysis and evaluate the regression assumptions.

The residual plot shows (a linear pattern/a nonlinear pattern/no pattern) and (roughly equal/ clearly unequal) spread. Plotting the residuals in collection order (is necessary and does not show a cyclical pattern/ is necessary and shows a cyclical pattern/ is not necessary).

f. At the

0.05

level of significance, is there evidence of a linear relationship between total taxes and portfolio value?

State the null and alternative hypotheses.

H0: ___

H1: ___

(Type integers or decimals. Do not round.)

Determine the test statistic.

tSTAT=_________

(Round to two decimal places as needed.)

Determine the p-value.

The p-value is_____.

(Round to three decimal places as needed.)

State the conclusion.

_________ H0. There _________ evidence of a linear relationship between total taxes and portfolio value.

g. Which of the following is true from the data and analysis in this question?

There is a positive relationship between total taxes and portfolio value. However, it cannot be stated that a higher portfolio value causes higher total taxes.

There is a negative relationship between total taxes and portfolio value. However, it cannot be stated that a lower portfolio value causes higher total taxes.

A higher portfolio value causes higher total taxes.

There is no relationship between portfolio value and total taxes.

A lower portfolio value causes higher total taxes.

None of the above.

Expert Solution

Step by step

Solved in 4 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

$Sequence$

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.