Use the file CAN4 to predict the level of taxes paid and benefits received by individuals at different gross incomes X. For this, use the window "non-parametric regression", and choose alternatively for the X axis the "level" or the "percentile" of gross incomes. What do these regressions indicate?

Answer

• X axis = level

STEP 1: Use the DAD Application: DISTRIBUTION|NON PARAMETRIC REGRESSION

• After choosing the appropriate variable(s) and parameters, click on the  GRAPH button.

RESULTS