U.S. Tax Code probability homework

In summary: Yes, that sounds correct. Conditional probability is a way to calculate the probability of something happening given some other condition is met.
  • #1
g3lo
2
0
Hello All,

I am new to these forums and hope someone may help me out. I am doing an assignment and am stuck on one of the questions.

There is a sample of 1000 people of different age groups.
18-24, 25-34, 35-44, 45-54, 55-64, 65 or older

People were asked if they thought the new tax code is fair or unfair. I have an excel document with all the data.

The question asks, what is the probability that the people felt that the U.S. Tax Code is unfairly spread across income groups and education levels.

I do not want the answer, rather how I can approach to obtain the answer myself. Your help is greatly appreciated in advance.

How would I tackle the problem?
--G3LO
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  • #2
g3lo said:
Hello All,

I am new to these forums and hope someone may help me out. I am doing an assignment and am stuck on one of the questions.

There is a sample of 1000 people of different age groups.
18-24, 25-34, 35-44, 45-54, 55-64, 65 or older

People were asked if they thought the new tax code is fair or unfair. I have an excel document with all the data.

The question asks, what is the probability that the people felt that the U.S. Tax Code is unfairly spread across income groups and education levels.

I do not want the answer, rather how I can approach to obtain the answer myself. Your help is greatly appreciated in advance.

How would I tackle the problem?
--G3LO
Report Post Edit/Delete Message

Hey there and welcome to the forums.

For something like what you are looking for, have a look into experimental design.

To eliminate the kinds of bias you are talking about, it would be expected that the experiment where as random and as unbiased as possible.

Are you or have you done a major in statistics?
 
  • #3
No I have not.

This is the data.
Age Totals
Response18-24 25-34 35-44 45-54 55-64 65 or older
Fair 68 165 208 153 68 36 698
Unfair 42 96 79 51 20 14 302
Totals 110 261 287 204 88 50 1000

Would it be correct, if the question is asking, for each age group, what is the probability that the result is unfair.

I would do 42/1000, 96/1000, 79/1000, etc.

Is that correct?
 
  • #4
Actually I just want to apologize since I thought you were asking about finding a "fair" experiment. For some reason I tied the word "fair" and "unfair" to the experiment so disregard the above comment.

As for getting probability for age group you will probably be interested in conditional probability. So say P(Unfair | Age = 18-24) = P(Unfair AND 18-24)/P(Age = 18-24).

Does this sound right?
 

Related to U.S. Tax Code probability homework

1. What is the U.S. Tax Code?

The U.S. Tax Code is a set of laws and regulations that govern how individuals and businesses are required to report and pay taxes to the federal government.

2. How does probability relate to the U.S. Tax Code?

Probability is used in the U.S. Tax Code to calculate the likelihood of certain events occurring, such as whether a taxpayer will be audited or whether a deduction will be allowed.

3. What is the purpose of using probability in the U.S. Tax Code?

The use of probability in the U.S. Tax Code helps to ensure fairness and accuracy in the taxation system. It helps to determine the likelihood of certain tax-related events and allows for more precise calculations of taxes owed.

4. How can I apply probability in solving U.S. Tax Code homework problems?

To apply probability in solving U.S. Tax Code homework problems, you will need to have a good understanding of the relevant tax laws and regulations, as well as basic probability concepts such as odds, expected value, and likelihood. You may also need to use mathematical tools such as formulas and equations to calculate probabilities for specific tax scenarios.

5. Are there any resources available for learning about probability in the context of the U.S. Tax Code?

Yes, there are many resources available for learning about probability in the context of the U.S. Tax Code. These include textbooks, online tutorials, and resources provided by the Internal Revenue Service (IRS). It is also helpful to consult with a tax professional for guidance on specific tax-related probability problems.

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