A Sociologist Examines the Relationship Between the Poverty Rate and Several

question 45

Multiple Choice

A sociologist examines the relationship between the poverty rate and several socioeconomic factors.For the 50 states and the District of Columbia (n = 51) ,he collects data on the poverty rate (y,in %) ,the percent of the population with at least a high school education (x₁) ,median income (x₂,in $1000s) ,and the mortality rate per 1,000 residents (x₃) .He estimates the following model as = β₀ + β₁ Education + β₂ Income + β₃ Mortality + ε.The following ANOVA table shows a portion of the regression results. What is the poverty rate for a state where 85% of the population has at least a high school education,the median income is $50,000,and the mortality rate is 10 per 1,000 residents?

• A) 12.6%
• B) 14.6%
• C) 16.6%
• D) 18.6%

---

Definitions:

Compounded Quarterly

Interest calculation method where the interest is added to the principal four times a year, enhancing the effect of compounding over time.

Effective Annual Rate

The interest rate on an investment or loan, calculated annually, that takes into account the effects of compounding.

Simple Interest

Interest calculated only on the original principal and paid only at the maturity date.

GICs

Guaranteed Investment Certificates, a type of Canadian investment that offers a guaranteed rate of return over a fixed period.