Tests of Normality

Kolmogorov-Smirnova
Statistic
Country tax

df

.127

Shapiro-Wilk

Sig.
81

Statistic

.003

.950

df

Sig.
81

.003

rate
a. Lilliefors Significance Correction

Interpretation: The test statistics are shown in the third table. Here two tests for
normality are run. For dataset small than 2000 elements, we use the ShapiroWilk test; otherwise, the Kolmogorov-Smirnov test is used. Here the number of
data elements is only 81; hence the Shapiro wilk test is preferred. Here the level
of significance .003 is less than standard value of 0.05, we reject the null
hypothesis that data comes from a normal source and conclude that the data is
forms a non normal distribution. However to determine, which is the best fit
distribution, we have to use the goodness of fit test using statistical fitting
softwares

Extreme Values
Case Number
countrytax

Highest

Lowest

Value

38.05

15

38.05

24

36.75

33

36.50

42

35.50

76

19.68

58

20.42

67

20.60

49

20.81

80

21.34

Correlations
countrytax
countrytax

Pearson Correlation

year
1

Sig. (2-tailed)
N
year

Pearson Correlation
Sig. (2-tailed)
N

-.277*
.012

81

81

-.277*

.012
81

81

*. Correlation is significant at the 0.05 level (2-tailed).

Interpretation: Here the Pearson correlation coefficient is -.277. This means that as one variable
increases in value, the second variable decreases in value. However here there is no strong change
as the correlation coefficient value is less. The significance level is is found as .012 which is less than

0.05. This value will tell, if there is a statistically significant correlation between the two variables. Here
we can conclude that there is a statistically significant correlation between the two variables year and
tax rates. That means, increases or decreases in one variable do significantly relate to increases or
decreases in second variable.

Model Summaryb
Change Statistics

Model

.277a

R Square

Adjusted R

Std. Error of

R Square

Square

the Estimate

Change

Change

.077

.065

3.97241

.077

Sig. F
df1

6.556

df2
1

Change
79

.012

a. Predictors: (Constant), year

b. Dependent Variable: countrytax

This table provides the R and R2 values. The R value represents the simple correlation which is 0.277
indicating presence of correlation, but weak. The R2 value indicates how much of the total variation in
the dependent variable, country tax can be explained by the independent variable year. Here it is
7.7% which is very less.
The next table is the ANOVA table, which reports how well the regression equation fits the data (i.e.,
predicts the dependent variable) and is shown below:

ANOVAb
Model
1

Sum of Squares
Regression

df

Mean Square

103.456

103.456

Residual

1246.624

79

15.780

Total

1350.080

80

F
6.556

Sig.
.012a

a. Predictors: (Constant), year

b. Dependent Variable: countrytax

Here the level of significance is 0.012 which indicates that the overall regression
model is significant and is a good fit for the given data.

Coefficientsa

Model
1

Unstandardized

Standardized

95.0% Confidence Interval

Coefficients

Coefficients

for B

B
(Constant)
year

Std. Error

907.050

343.600

-.438

.171

Beta

-.277

Sig.

Lower Bound Upper Bound

2.640

.010

223.131

1590.970

-2.560

.012

-.778

-.097

a. Dependent Variable: countrytax

From the coefficients table, one can formulate the regression equation. Here it
will be as follows
Country taxes = 907.050 -0.438x (year)