Angela Chou Has Been Asked to Investigate the Determinants of Poverty

question 88

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, and 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. Using the output below, determine which variable Angela should consider deleting.

• A) It doesn't matter which she uses, the results are virtually the same in any case.
• B) Angela should delete the high school information, because the P-value is over 0.05.
• C) Angela should delete the bachelor'sdegree information, because the P-value is close to 0.05.
• D) Angela should delete the unemployment rate information because the P-value is 0.00.
• E) Angela should exclude the single-family and unemployment information because the P-value values are 0.

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Definitions:

Transfer Price

The cost at which divisions within the same organization trade goods and services with each other.

Operating Income

Earnings from a company’s primary business activities, excluding deductions of interest and taxes.

Variable Cost

Costs that vary directly with the level of production or output, such as raw materials and direct labor.

Transfer Price

The price at which goods and services are sold between divisions within the same company, often used for accounting and tax purposes.