A Sociologist Examines the Relationship Between the Poverty Rate and Several

question 7

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 y = β₀ + β₁ Education + β₂ Income + β₃ Mortality + ε.The following ANOVA table shows a portion of the regression results. Which of the following is the value of the mean square error, (MSE) ?

• A) 0
• B) 1.5
• C) 3.0
• D) 4.5

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Definitions:

Income Subsidy

An income subsidy is a government-provided financial assistance program intended to boost an individual's income to a level sufficient for meeting basic living standards.

Negative Income Tax

A program where the government provides additional income to those who earn under a specific threshold, rather than collecting taxes from them.

Tax Liability

Tax liability is the total amount of tax that an individual or organization is legally obligated to pay to a taxing authority based on earnings, property ownership, or other taxable conditions.

Earned Income Tax Credit

A tax credit in the United States designed to benefit individuals and families with low to moderate incomes, effectively reducing the amount of tax owed and possibly resulting in a refund.