Statistics for Business: Decision Making and Analysis, 3rd Edition

1. ... dollars) for 45 taxpayers with incomes between $100,000 and $200,000. One plot shows the actual (income, tax) pairs; the other two scramble the pairs.

   1. Does the IRS need total income to be associated with the taxes paid if such data are to help it identify tax cheats?²

      ² Yes. If associated, the IRS can anticipate the amount of taxes from the income.

   2. Are the taxes paid associated with the total income?³

      ³ Yes. The middle plot is the real plot and is distinct from the other two.

   

   6.2-2 Full Alternative Text

Describing Association in a Scatterplot

Once you decide that a scatterplot shows association, then you need to describe the association. ...