A Sociologist Examines the Relationship Between the Poverty Rate and Several

question 140

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. The coefficient of determination indicates that __________.

• A) 14% of the variation in the poverty rate is explained by the regression model.
• B) 14% of the variation in the regression model is explained by the variation in the poverty rate.
• C) 86% of the variation in the poverty rate is explained by the regression model.
• D) 86% of the variation in the regression model is explained by the variation in the poverty rate.

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Definitions:

Price Competition

A type of competition where businesses focus on selling products and services at lower prices than their competitors.

Tacit Collusion

A form of collusion among competitors in which they cooperate to achieve higher prices or market share without explicit communication.

Product Differentiation

the process of distinguishing a product or service from others in the market to make it more attractive to a particular target audience.

Price Leadership

A strategy used by a dominant company in a market to set the price of a product or service, which competitors then follow.