A University of Kansas Study Shows the Following One-Generation Transition

question 248

Multiple Choice

A University of Kansas study shows the following one-generation transition probabilities among four major income groups. In the long term, what percentage of male earners would you expect to find in each category $$\begin{array} { | l | l | l | l | l | } \hline { \begin{array} { l } \text { Father's } \\\text { Income }\end{array} } & { \text { Son's income } } \\ & \begin{array} { l } \text { Bottom } \\\mathbf { 1 0 \% }\end{array} & \mathbf { 1 0 - 5 0 \% } & \mathbf { 5 0 - 9 0 \% } & \begin{array} { l } \text { Top } \\\mathbf { 1 0 \% }\end{array} \\\hline \begin{array} { l } \text { Bottom } \\\mathbf { 1 0 \% }\end{array} & 0.6 & 0.32 & 0.07 & 0.01 \\\hline \mathbf { 1 0 - 5 0 \% } & 0.1 & 0.48 & 0.38 & 0.04 \\\hline \mathbf { 5 0 - 9 0 \% } & 0.04 & 0.38 & 0.48 & 0.1 \\\hline \begin{array} { l } \text { Top } \\\mathbf { 1 0 \% }\end{array} & 0.01 & 0.07 & 0.32 & 0.6 \\\hline\end{array}$$

• A)Bottom 10%: 35.79% 10-50%: 14.21%
• 50-90%: 14.21%
• Top 10%: 35.79%
• B) Bottom 10%: 13.21%
• 10-50%: 36.79%
• 50-90%: 36.79%
• Top 10%: 13.21%
• C) Bottom 10%: 36.79%
• 10-50%: 13.21%
• 50-90%: 13.21%
• Top 10%: 36.79%
• D) Bottom 10%: 14.21%
• 10-50%: 35.79%
• 50-90%: 35.79%
• Top 10%: 14.21%
• E) Bottom 10%: 10%
• 10-50%: 40%
• 50-90%: 40%
• Top 10%: 10%

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