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Poverty in a Study of How the Burden of Poverty

question 12

Essay

Poverty In a study of how the burden of poverty varies among U.S. regions, a random sample of 1000 individuals from each region of the United States recently yielded the information on poverty (based on defining the poverty level as an income below $10,400 for a family of 4 people). The data are provided in the table below. (All the conditions are satisfied - don't worry about checking them.)
 Northwest  Midwest  South  West  Total  Poor 112105154113484(121)(121)(121)(121) Not Poor 888(879)895(879)846(879)887(879)3516 Total 10001000100010004000\begin{array}{|l|c|c|c|c|c|}\hline& \text { Northwest } & \text { Midwest } & \text { South } & \text { West } & \text { Total } \\\hline \text { Poor } & 112 & 105 & 154 & 113 & 484 \\& (121) & (121) & (121) & (121) & \\\hline \text { Not Poor } & \begin{array}{c}888 \\(879)\end{array} & \begin{array}{c}895 \\(879)\end{array} & \begin{array}{c}846 \\(879)\end{array} & \begin{array}{c}887 \\(879)\end{array} & 3516 \\\hline \text { Total } & 1000 & 1000 & 1000 & 1000 & 4000 \\\hline\end{array}

χ2=0.67+2.12+9.00+0.53+0.09+0.29+1.24+0.07+=14.01\begin{array}{r}\chi^{2}=\quad 0.67+2.12+9.00+0.53+ \\0.09+0.29+1.24+0.07+ \\=14.01\end{array}
P=0.0029P=0.0029
a. Write appropriate hypotheses.
b. How many degrees of freedom?
c. Suppose the expected values had not been given. Show exactly how to calculate the expected count in the first cell.
d. State your complete conclusion in context.

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Definitions:

Activity Rates

Predetermined rates used in activity-based costing to allocate costs to products or services based on their consumption of activities.

Direct Labor Hours

The total hours worked by employees directly involved in the manufacturing process or providing services, used in calculating production costs or rates.

Product-level Costs

Costs that can be directly attributed to a specific product, including materials and direct labor costs.

Units

Basic measures or quantities used to express a variable, item, or the extent of a service or product used in transactions.

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