Angela Chou Has Been Asked to Investigate the Determinants of Poverty

question 69

Multiple Choice

Angela Chou has been asked to investigate the determinants of poverty in Ontario communities. She collected data on 60 communities from Statistics Canada. She selected the percentage of poor persons living under the poverty line [Poor (%) ], measured by Low Income Cut-Off, designed by Statistics Canada as a measure of poverty for a community, as the dependent variable. The independent variables selected are percent of single families in each community, the unemployment rate in each community, and percent of population in the community holding a bachelor's degree as their highest
Of education attained. Determine the regression equation.

• A) Poor (%) = -3.81 - 0.798 Single-Families (%) + 0.624 Unemployment Rate (%) - 0.170 Bachelor's Degree (%) - 0.003 High School (%)
• B)Poor (%) = -3.81 + 0.798 Single-Families (%) + 0.624 Unemployment Rate (%) + 0.170 Bachelor's Degree (%) + 0.003 High School (%)
• C)Poor (%) = 3.81 + 0.798 Single-Families (%) + 0.624 Unemployment Rate (%) - 0.170 Bachelor's Degree (%) - 0.003 High School (%)
• D) Poor (%) = -3.81 + 0.798 Single-Families (%) + 0.624 Unemployment Rate (%) - 0.170 Bachelor's Degree (%) - 0.003 High School (%)
• E) Poor (%) = 3.81 + 0.798 Single-Families (%) - 0.624 Unemployment Rate (%) + 0.170 Bachelor's Degree (%) - 0.003 High School (%)

---

Definitions:

Sales Returns and Allowances

Accounts that reduce the total gross sales revenue due to products being returned by customers or allowances for damaged goods.

Purchase Discounts

Reductions in price given by the seller to the buyer for early payment or for buying in bulk.

Freight-In

The cost associated with transporting goods into a business, usually included in the inventory cost of purchased goods.

Perpetual Inventory System

An accounting method that records inventory transactions in real-time, continuously updating inventory and cost of goods sold.