Angela Chou Has Been Asked to Investigate the Determinants of Poverty

question 79

Multiple Choice

Angela Chou has been asked to investigate the determinants of poverty in Ontario communities. She collected data on 60 communities from Statistics Canada. She selected the percentage of poor persons living under the poverty line [Poor (%) ], measured by Low Income Cut-Off, designed by Statistics Canada as a measure of poverty for a community, as the dependent variable. The independent variables selected are percent of single families in each community, the unemployment rate in each community, percent of population in the community holding a bachelor's degree as their highest level of education attained, and percent of population holding a High School Diploma as their highest level of education attained. Given the regression equation Poor (%) = -3.81 + 0.798 Single-Families (%) + 0.624 Unemployment Rate (%) - 0.170 Bachelor's Degree (%) - 0.003 High School (%) .
What is the estimated percentage of poor persons living below the poverty line in a community with 5% of the community as single-families, a 5% unemployment rate, only 5% holding a Bachelor's Degree and 25% having High School as their highest attained educational level?

• A) 2.375
• B) -2.375
• C) 11.845
• D) -11.845

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Definitions:

Transitive Inference

A logical process where if A relates to B and B relates to C, then A must relate to C, often tested in cognitive psychology.

Cognitive Ability

The capacity to perform various mental activities related to learning, problem-solving, decision-making, and understanding complex ideas.

Shorter

Relating to a length or duration that is less than average or than previously mentioned.

Seriation

A cognitive ability that allows individuals to arrange objects in accordance with a certain criterion, such as size or color.