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.

---

Definitions:

Variable Costing

A financial recording method that counts only the variable expenses related to production (direct materials, direct labor, and variable manufacturing overhead) in the pricing of products.

Variable Costing

A financial recording approach that incorporates only variable manufacturing expenses, such as raw materials, direct workforce, and fluctuating production overheads, into the costs of goods produced.

Net Operating Income

A financial term representing the profit made from a company’s operations, after subtracting operating expenses from operating income.

Absorption Costing

The product cost determination method under this accounting strategy includes the expenses for direct materials, direct labor, and all manufacturing overhead, whether it is variable or fixed.