Poverty in a Study of How the Burden of Poverty

question 90

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 and calculation of the test statistic is shown in the table
below. (All the conditions are satisfied - don'ft worry about checking them.)

$\begin{array}{l}\begin{array}{lll}\chi^{2}= & 0.67+2.12+9.00+0.53+ & 12.31+ \\& 0.09+0.29+1.24+0.07+ & 1.70\end{array}\\=14.01\\P=0.0029\end{array}$
a. Write appropriate hypotheses.
b. Suppose the expected values had not been given. Show exactly how to calculate the
expected count in the first cell.
c. How many degrees of freedom are there?
d. State your complete conclusion in context.

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Definitions:

Integrated Production

A system of production where various processes are interconnected and work harmoniously to improve efficiency and output.

Descendants

Individuals who are direct offspring or belong to subsequent generations of a particular ancestor or group of ancestors.

Trust

A fiduciary relationship in which one party, known as a trustor, gives another party, the trustee, the right to hold title to property or assets for the benefit of a third party, the beneficiary.

Oligopolist

A firm or entity that operates in a market structure characterized by a small number of firms dominating the market, leading to limited competition.