What are Indirect Taxes? Indirect taxes are basically taxes that can be passed on to another entity or individual. They are usually imposed on a manufacturer or supplier who then passes on the tax to the consumer. The most common example of an indirect tax is the excise tax on cigarettes and alcohol. Value Added…
What are Direct Taxes? Direct taxes are one type of taxes an individual pays that are paid straight or directly to the government, such as income tax, poll tax, land tax, and personal property tax. Such direct taxes are computed based on the ability of the taxpayer to pay, which means that the higher their…
What is a Frequency Polygon? A frequency polygon is a visual representation of a distribution. The visualization tool is used to understand the shape of a distribution. Essentially, the frequency polygon indicates the number of occurrences for each distinct class in the dataset. In addition, the graph may be used to show the cumulative frequency…
What is Cumulative Frequency Distribution? Cumulative frequency distribution is a form of frequency distribution that represents the sum of a class and all classes below it. Remember that frequency distribution is an overview of all distinct values (or classes of values) and their respective number of occurrences. The cumulative frequency distribution is extremely helpful when…
What is a Bell Curve? A bell curve is the informal name of a graph that depicts a normal probability distribution. The term obtained its name due to the bell-shaped curve of the normal probability distribution graph. However, the term is not quite correct because the normal probability distribution is not the only probability distribution…
What is a Positively Skewed Distribution? In statistics, a positively skewed (or right-skewed) distribution is a type of distribution in which most values are clustered around the left tail of the distribution while the right tail of the distribution is longer. The positively skewed distribution is the direct opposite of the negatively skewed distribution. Central…
What is a Negatively Skewed Distribution? In statistics, a negatively skewed (also known as left-skewed) distribution is a type of distribution in which more values are concentrated on the right side (tail) of the distribution graph while the left tail of the distribution graph is longer. While normal distribution is the most commonly encountered type…
What is the Law of Large Numbers? In statistics and probability theory, the law of large numbers is a theorem that describes the result of repeating the same experiment a large number of times. The large numbers theorem states that if the same experiment or study is repeated independently a large number of times, the…
What is Insurance Deductible? Insurance deductible pertains to the amount of money on an insurance claim that you would pay before the coverage kicks in and the insurer pays. In other words, it’s the money that you would shell out of your own pocket before receiving insurance coverage. After paying your deductible, the insurance company…
