Which Statement Accurately Describes the Current Income Distribution in the United

question 74

Multiple Choice

Which statement accurately describes the current income distribution in the United States?

• A)The purchasing power of lower-income groups has been steadily rising.
• B)The middle class is outpacing all other income groups.
• C)Wealthy households are outpacing both poor and middle-class households.
• D)The income distribution among all households is becoming more equal.
• E)Wealthy households are declining rapidly in purchasing power.

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Definitions:

Multinomial Distribution

A statistical distribution that generalizes the binomial distribution for variables that can take on more than two categories.

Proportions

A statistical measure that describes the size of a part in relation to the whole, often expressed as a fraction or percentage.

Chi-squared Goodness-of-fit Test

A statistical test used to determine whether sample data fits a population with a specified distribution.

Test Statistic

A value calculated from sample data during a hypothesis test. It is used to determine whether to reject the null hypothesis.