Question

6. (5;1 for a),1 for b) ,2 for c), 1 for d)) In 2003, then President W. Bush proposed to eliminate taxes imposed on dividends received by stockholders (under the pretext of avoiding double taxation. Publicly-held enterprises pay taxes on their profits, from which dividends are paid. These dividends are then subjected to income taxes imposed on individuals.) According to a survey carried out by Techno Metrica Market Intelligence that involved 671 Americans, 47 % of them approved of this proposition, while 44 % were opposed, and 9 % had no opinion. In classifying these responses according to political leanings, the survey revealed that 29 % of democrats, 64 % of republicans, and 48 % of independents were favorable towards the proposition a) How many of the surveyed individuals were favorable towards the elimination of the tax? b) What is the conditional probability that an interviewed person would support the proposition given that he/she was a Democrat? c) Is the affiliation with a political party independent with their position on this proposition? d) Assuming that peoples' responses are consistent with their own financial interest, which group do you think would benefit the most if this proposition were to be implemented?

Answer 1

Part (a) :  

No. of surveyed individuals favorable towards the elimination of the tax = 47% of 671 = 0.47 * 671 = 315.37    Therefore, corect answer is 315.

For part (b), (c), (d), See the following image :

(An Therefore am on pposts the persen iS O. 29 oCha ody untomd pe sun Suports person s oCra puposihion pro posthon erson 、

PAGE No. → Polr trcal ath Iration rs dependent on the person's position On pruposihun vite versa Ans(c ar (d) -> The group, which has heghest Percentage of peaple n fawor of prmposition Ts that o Republrcans. (64 axe tn faver. If tne Prop osition S imple menteet, Republicans would benefrt he most

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