A Sociologist Examines the Relationship Between the Poverty Rate and Several

question 79

Multiple Choice

A sociologist examines the relationship between the poverty rate and several socioeconomic factors. For the 50 states and the District of Columbia (n = 51) , he collects data on the poverty rate (y, in %) , the percent of the population with at least a high school education (x₁) , median income (x₂, in $1000s) , and the mortality rate per 1,000 residents (x₃) . He estimates the following model as y = β₀ + β₁Education + β₂Income + β₃Mortality + ε. The following ANOVA table shows a portion of the regression results. The coefficient of determination indicates that ________.

• A) 14% of the variation in the poverty rate is explained by the regression model.
• B) 14% of the variation in median incomes is explained by the sample regression equation.
• C) 86% of the variation in the poverty rate is explained by the sample regression equation.
• D) 86% of the variation in median incomes is explained by the sample regression equation.

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Definitions:

Property Income

Property income refers to earnings one receives from property investments, including rents, dividends, and interest.

Politically Directed Spending

Government expenditure that is determined more by political considerations than by economic efficiency or need.

Rent-seeking Activity

Efforts by individuals or entities to increase their share of existing wealth without creating new wealth, often through manipulation or exploitation of resources.

Productive Activity

Actions or tasks that lead to the production of goods and services, contributing to the economy's output.