Loose Leaf for Statistical Techniques in Business and Economics
17th Edition
ISBN: 9781260152647
Author: Douglas A. Lind
Publisher: McGraw-Hill Education
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Chapter 17, Problem 5SR
a.
To determine
Find Person J’s real income in 2000.
b.
To determine
Find Person J’s real income in 2016.
c.
To determine
Interpret the real income for 2000 and 2016.
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In The Boston Globe on September 30, 2015 you could read that Warren Buffet is worth $62 billion, and that. . .if he gave up on aggressive investing and put his money into a simple savings account, with returns at a bare 1 percent, he’d earn more in interest each hour than the average American earns in a year.Use the data in this story to estimate the annual earnings of the average American. Do you think the estimate is reasonable?
Compute the rate of return for investment represented by the following cash flow: (Ans.10.83%)
Year
0
1
2
3
4
5
Cash Flow
-$595
$250
$200
$150
$100
$50
Federal Income tax owed by a married couple filing jointly can be found from the following table.
Married Filing Jointly
Taxable Income
$0-$18,550
$18,551-$75,300
$75,301-$151,900
$151,901-$231,450
T(x) =
$231,451-$413,350
$413,351-$466,950
$466,951 or more
10%
if
Tax Rate
$1,855 plus 15% of the
amount over $18,550
$10,367.50 plus 25% of the
amount over $75,300
$29,517.50 plus 28% of the
amount over $151,900
$51,791.50 plus 33% of the
amount over $231,450
$111,818.50 plus 35% of the
amount over $413,350
(a) For incomes up to $151,900, write the piecewise defined function T with input x that models the federal tax dollars due as a function of x, the taxable income dollars earned
$130,578.50 plus 39.6% of
the amount over $466,950
0 < x≤ 18,550
if 18,550 < x≤ 75,300
(b) Use the function to find T(40,000).
$
if 75,300 < x≤ 151,900
(c) Find the tax due on a taxable income of $100,000.
$
(d) A friend tells Jack Waddell not to earn any money over $75,300 because it will raise his tax rate to…
Chapter 17 Solutions
Loose Leaf for Statistical Techniques in Business and Economics
Ch. 17 - Prob. 1.1SRCh. 17 - Prob. 1.2SRCh. 17 - Prob. 1ECh. 17 - Prob. 2ECh. 17 - Prob. 3ECh. 17 - Prob. 4ECh. 17 - Prob. 2SRCh. 17 - Prob. 5ECh. 17 - Prob. 6ECh. 17 - Prob. 7E
Ch. 17 - Prob. 8ECh. 17 - Prob. 3SRCh. 17 - Prob. 9ECh. 17 - Prob. 10ECh. 17 - Prob. 4SRCh. 17 - Prob. 11ECh. 17 - Prob. 5SRCh. 17 - Prob. 6SRCh. 17 - Prob. 7SRCh. 17 - Prob. 13ECh. 17 - Prob. 14ECh. 17 - Prob. 15ECh. 17 - Prob. 16ECh. 17 - Prob. 17CECh. 17 - Prob. 18CECh. 17 - Prob. 19CECh. 17 - Prob. 20CECh. 17 - Prob. 21CECh. 17 - Prob. 22CECh. 17 - Prob. 23CECh. 17 - Prob. 24CECh. 17 - Prob. 25CECh. 17 - Prob. 26CECh. 17 - Prob. 27CECh. 17 - Prob. 28CECh. 17 - Prob. 29CECh. 17 - Prob. 30CECh. 17 - Prob. 31CECh. 17 - Prob. 32CECh. 17 - Prob. 33CECh. 17 - Prob. 34CECh. 17 - Prob. 35CECh. 17 - Prob. 36CECh. 17 - Prob. 37CECh. 17 - Prob. 38CECh. 17 - Prob. 39CECh. 17 - Prob. 40CECh. 17 - Prob. 41CECh. 17 - Prob. 42CECh. 17 - Prob. 43CECh. 17 - Prob. 44CECh. 17 - Prob. 45CECh. 17 - Prob. 46CECh. 17 - Prob. 47CECh. 17 - Prob. 48CECh. 17 - Prob. 49CECh. 17 - Prob. 50CECh. 17 - Prob. 51CECh. 17 - Prob. 52CECh. 17 - Prob. 53CECh. 17 - Prob. 54CECh. 17 - Prob. 55CE
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