Angela Chou Has Been Asked to Investigate the Determinants of Poverty

question 32

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, percent of population in the community holding a bachelor's
Degree as their highest level of education attained, and percent of population holding a High
School Diploma as their highest level of education attained. Using the outputs below for this data
Set, determine whether Angela should use the model with the high school data included, or the
Data without the high school data, and why.

• A) It doesn't matter which she uses, the results are virtually the same in either case.
• B) Angela should use the data that includes the high school information, because more information is always better than less information.
• C) Angela should use the data that includes the high school information, because the calculated F value is lower.
• D) Angela should include the high school data because the P-value is 0.977, close to 1.
• E) Angela should exclude the high school data because the adjusted R-squared value is a little higher than in the data that includes the high school information.

---

Definitions:

Two-Part Tariffs

A pricing strategy that includes a fixed fee plus a variable fee based on usage or consumption.

Volume Discounts

Price reductions given to customers who buy in large quantities, aimed at encouraging bulk purchases.

Incentive Obstacles

Challenges faced in creating or maintaining motivation among stakeholders, often due to misaligned goals or insufficient rewards.

Compensation Plan

A structured policy designed by businesses to remunerate its employees, which can include salaries, wages, bonuses, and commissions.