The Following Diagram Shows the Movement of U $a = 28.8 \%$

question 45

Essay

The following diagram shows the movement of U.S. households among three income groups - affluent, middle class, and poor - over the 11-year period 1978-1989.
? $a = 28.8 \%$ , $b = 7.2 \%$ , $c = 30.1 \%$ , $d = 8.3 \%$ ?
Use the transitions shown in the diagram to construct a transition matrix (assuming zero probabilities for the transitions between affluent and poor).

Take 1 = Affluent, 2 = Middle class, 3 = Poor.

Assuming that the trend shown was to continue, what percent of households classified as affluent in 1978 were predicted to become poor in 2000 (Give your answer to the nearest 0.1%.)

The answer is __________%

According to the model, what percentage of all U.S. households will be in each income bracket in the long term (Give your answers to the nearest 0.1 percent.)

Percent of affluent is __________%

Percent of middle class is __________%

Percent of poor is __________%

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Definitions:

Alzheimer's

A progressive neurodegenerative disorder that causes memory loss, cognitive decline, and ultimately, the inability to carry out simple daily activities.

Income Security Programs

Income security programs are government initiatives designed to ensure individuals have access to sufficient resources to meet basic needs, often through assistance like unemployment benefits, welfare, or social security.

Poverty Rates

The proportion of a population living below the poverty line, reflecting the percentage of individuals or households earning less than a certain income threshold necessary for basic living standards.

Poverty Rate

The proportion of a population living below the poverty line, defined by national or international standards, indicating economic hardship.