What is the solution for this problem? the In 2011, the published a published a

Question

What is the solution for this problem? the In 2011, the published a published a saying that the number of Americans living below the report federal poverty line was at an all-time high. We want to know if the percentage of residents in each living below the federal poverty line can be predicted by taking into account both states ra- cial composition and residents educational attainment. Figure 13.37 displays the results of multiple Figure 13.37 Multiple Regression Predicting the Percentage Living Below Poverty by Racial Composition and Educational Attainment Coefficients Standardized Unstandardized Coefficients Coefficients B Std. Error Beta 000 1 (Constant 9.254 75.613 -047 -410 684 Black Residents .037 -.015 -.788 -6.836 WIHS Diploma .104 a. Dependent variable: Below Poverty Model Summary Adjusted R Std. Error of the Estimate Square R Square 2.0308 762 581 a. Predictors: (Constano, WlHs Diploma, Black Residents

Explanation / Answer

a. the b coefficient for the percentage of black residents in each state = - 0.015

The b coefficient for the percentage of states' residents with at least a high school diploma = - 0.710

Here we can interpret that when there is percent increase in black population in a state, there is reduction in the poverty but that is not too much high. It is just by increasing 66% black population will decrease 1% poverty, so the relation is not that much significant. But in the case of education with increase in percentage population in high school diploma, there is substantially reduction in poverty level. If we increase 1 % increase in high school education, it will decrease 0.71% poverty.

Here we can say poverty can be explained in terms of education level but not in terms of black population. It is because we can reject the null hypothesis in the case of education level which has significant P - value but not in the case of black population, which coefficient have non - significant p - value.

b. Here the poverty model

y (P) = 75.613 - 0.015 xblack- 0.71 xHSdiploma

so here xblack= 10.3 and xHS diploma = 86.9%

so y (P) = 75.613 - 0.015 * 10.3 - 0.71 * 86.9 = 13.7595

the poverty level calculated above is below 13.8% which is the mean value e living below the federal poverty line.

c. coefficient of determination R2 = 0.581

By employing multiple regression model we have increased our prediction of the percentage living below the poverty line is about 58.1% , which was 56.3% as adjusted coefficient of determination.

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