A Researcher Analyzes the Factors That May Influence the Poverty

question 113

Essay

A researcher analyzes the factors that may influence the poverty rate and estimates the following model: y = β₀ + β₁x₁ + β₂x₂ + β₃x₃ + ε,where y is the poverty rate (y,in %),x₁ is the percent of the population with at least a high school education,x₂ is the median income (in $1,000s),and x₃ is the mortality rate (per 1,000 residents).The researcher would like to construct interval estimates for y when x₁,x₂,and x₃ equal 85%,$50,000,and 10,respectively.The researcher estimates a modified model where poverty rate is the response variable and the explanatory variables are now defined as A portion of the regression results is shown in the accompanying table. a.According to the modified model,what is the point estimate for the poverty rate when x₁,x₂,and x₃ equal 85%,$50,000,and 10,respectively.
b.According to the modified model,what is a 95% confidence interval for the expected poverty rate when x₁,x₂,and x₃ equal 85%,$50,000,and 10,respectively? ? (Note that t_0.025,35 = 2.030. )
c.According to the modified model,what is a 95% prediction interval for the poverty rate when x₁,x₂,and x₃ equal 85%,$50,000,and 10,respectively? (Note that t_0.025,35 = 2.030. )

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Definitions:

Private Sector

Refers to the part of the economy that is owned, operated, and funded by private individuals or companies, as opposed to the government.

Majority Voting

A decision-making process where the option that receives the most votes from participants wins, often used in elections and organizational decisions.

Negative Externalities

Costs incurred by third parties not directly involved in an economic activity, for example, pollution affecting non-participating individuals.

Economically Inefficient Outcomes

Situations where resources are not allocated optimally, resulting in lost potential utility or value.