Identify the Correct Statement About the Distribution of Income in the United

question 61

Multiple Choice

Identify the correct statement about the distribution of income in the United States in the last two decades.

• A)The share of income of the highest fifth quintile has increased in the last two decades because of an increase in the number of double-income households.
• B)The share of income of the lowest fifth quintile has increased in the last two decades because of an increase in the number of double-income households.
• C)The share of income of the highest fifth quintile has decreased in the last two decades because of an increase in the number of single-parent households.
• D)The share of income of the lowest fifth quintile has decreased in the last two decades because of a decrease in in-kind transfers.
• E)The share of income of the highest fifth quintile has increased in the last two decades because of an increase in transfer payments.

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Definitions:

Alternative Hypothesis

A hypothesis that proposes there is a statistically significant difference between two variables, contrasting with the null hypothesis.

Average Amount

The sum of numerical values divided by the count of values, providing a central or typical value for a dataset.

Significance Level

The likelihood of incorrectly dismissing the null hypothesis in a statistical analysis, commonly represented by alpha, when it is in fact correct.

Type I Error

The mistake of rejecting the null hypothesis when it is actually true, commonly referred to as a "false positive" result.