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:

Accounting Profits

The difference between total revenue and explicit costs of a business, calculated using principles of accounting.

Economic Profits

The surplus left after total costs (including both explicit and implicit costs) are subtracted from total revenues.

Short-Run Marginal Costs

Costs associated with producing one more unit of a good or service in the short term, where some inputs are fixed.

Market Price

The current price at which an asset or service can be bought or sold in the open market.