Lowest percent of income per tax household

[rte.sushil]

Question :

The state with the lowest percent of income per tax household derived from sources other than wages, salaries, dividends, and interest has an income per capita of more than $20,000.

Data:

State Population | Size of tax household | Average income per tax household ($)| % wages | % dividends & interest
Texas | 25,145,561 | 2.58 | 51,747 | 76.8%| 4.4%


Explanation:
Here, you need to deal with a derived number: the percent of income derived from sources other than those listed (wages, salaries, dividends, and interest). If you had Excel and could build another column, you would add the two percent columns that you do have and subtract them from 100%. Then you would sort by that new column. You want the lowest number in that column, so you want the highest sum of the two percents. Since the wage numbers seem to have more variability, sort by that column. Texas is at the bottom, with 76.8% wage income. Together with 4.4% dividends & interest, you get 81.2% (for 18.8% other income). Will any other states give you a higher sum? As you scan upwards, you should see that no other state will have as large a sum of % wages and % dividends & interest (of course, check any possibilities with your calculator). So Texas is the subject of the sentence.

What about the predicate? Does Texas have an income per capita (meaning per person) of more than $20,000? Well, divide the income per tax household by the size of tax household: $51,747 / 2.58 ≈ $20,057, which is more than $20,000. The statement is true.

My Question:
1.) an income per capita : means per person
so i think it should be divided by total population?
2.) Average income per tax household ($) : how can in the explanation it can be divided again by 2.58? ==> income per tax household / household? it doesn't seem correct? please clarify

How i Did?
==> 51,747 * (100- 81.2)/100 * 2.58 / 25,145,561.

Thanks in anticipation.
-Sushil

[tim]

It doesn't look like you've posted the full problem and solution here. Please do that so other students can benefit from our discussion, and also so we can better understand exactly what you're asking.

[rte.sushil]

It doesn't look like you've posted the full problem and solution here. Please do that so other students can benefit from our discussion, and also so we can better understand exactly what you're asking.

Because its an question of IR and i cant upload any picture

the question was:
The state with the lowest percent of income per tax household derived from sources other than wages, salaries, dividends, and interest has an income per capita of more than $20,000.

i identified the state below which had the lowest percent of income........ and its Data is:- (now understand the data)
Index
1.) State Population | 2.) Size of tax household | 3.) Average income per tax household ($)|4.) % wages |5.) % dividends & interest
specific data:
1.) Texas | 2.) 25,145,561 |3.) 2.58 | 4.) 51,747 | 76.8%| 5.) 4.4%


The doubt is in the explanation part mentioned above and listed below are my doubts.


My Question:
1.) an income per capita : means per person
so i think it should be divided by total population?
2.) Average income per tax household ($) : how can in the explanation it can be divided again by 2.58? ==> income per tax household / household? it doesn't seem correct? please clarify

How i Did?
==> 51,747 * (100- 81.2)/100 * 2.58 / 25,145,561.

[RonPurewal]

Please take a screen shot and post it here. If you don't know how to embed images, then upload the screen shot to postimage.org, and post the link here.

Thanks.

[rte.sushil]

http://postimg.org/image/sqi1ixifj/439405ff/

question_IR.jpg

[RonPurewal]

My Question:
1.) an income per capita : means per person
so i think it should be divided by total population?
2.) Average income per tax household ($) : how can in the explanation it can be divided again by 2.58? ==> income per tax household / household? it doesn't seem correct? please clarify

How i Did?
==> 51,747 * (100- 81.2)/100 * 2.58 / 25,145,561.

I'll be honest with you here: I don't have any idea what you are asking.
Please write your questions in complete sentences, to help me understand what you're asking. Thanks.

In terms of the math:

* A "tax household" in Texas contains an average of 2.58 people.

* You want income per capita. That means "per 1 person".

* Right now you have the income per 2.58 people.

* So, you divide by 2.58. That's the income per person.