Country a Has a Gini Coefficient of

question 56

Multiple Choice

Country A has a Gini coefficient of .3,and Country B has a Gini coefficient of .5.Which has more inequality?

• A) Country A
• B) Gini doesn't measure inequality
• C) Country B
• D) Country A and Country B have essentially the same level of inequality

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Definitions:

Dummy Variable

A variable used to model the effect of categorical independent variables. A dummy variable may take only the value zero or one.

Categorical Independent Variables

Variables that divide subjects into groups but do not allow for any kind of mathematical operation among groups.

Regression Model

The equation that describes how y is related to x and an error term; in simple linear regression, the regression model is y = b0 + b1x + e.

Adjusted Multiple Coefficient

A statistical measure adjusted for the number of variables in a model, used to assess the goodness-of-fit of a regression model.