Gini coefficient is a statistic used to measure income inequality within nations. It ranges from 0 to 100, with higher scores indicating more inequality. At the extremes, a Gini score of 0 would mean that everyone in the country earns the exact same income, and a Gini score of 100 would mean that only one person in the country earns all the income. Some people argue that the larger a nation is, the more difficult it is to maintain a fair distribution of incomes. In other words, does income inequality increase as population size increases? You can test this question by conducting a bivariate regression on the data in the table below. Throughout calculating, and for the final answer, round to two decimals. Country (1) X: Population (in millions) (2) Y: Gini Score (3) (4) (5) (6) (7) Sweden 8 27 Ethiopia 77 29 Switzerland 14 43 Laos 6 45 UK 58 35 Russia 144 44 US 291 40 Mexico 111 46 Brazil 190 56 State the regression line. Using the regression equation, what gini coefficient would you predict for Mexico? must show work. What is the prediction error for Mexico? What percentage of the variance in income inequality is explained by the size of the population? Hint: Think about what statistic this is asking for and then calculate it. Round answer to two decimals. must show work

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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Gini coefficient is a statistic used to measure income inequality within nations. It ranges from 0 to 100, with higher scores indicating more inequality. At the extremes, a Gini score of 0 would mean that everyone in the country earns the exact same income, and a Gini score of 100 would mean that only one person in the country earns all the income.

Some people argue that the larger a nation is, the more difficult it is to maintain a fair distribution of incomes. In other words, does income inequality increase as population size increases? You can test this question by conducting a bivariate regression on the data in the table below. Throughout calculating, and for the final answer, round to two decimals.

Country	(1) X: Population (in millions)	(2) Y: Gini Score	(3)	(4)	(5)	(6)	(7)
Sweden	8	27
Ethiopia	77	29
Switzerland	14	43
Laos	6	45
UK	58	35
Russia	144	44
US	291	40
Mexico	111	46
Brazil	190	56

State the regression line. Using the regression equation, what gini coefficient would you predict for Mexico? must show work.

What is the prediction error for Mexico?

What percentage of the variance in income inequality is explained by the size of the population? Hint: Think about what statistic this is asking for and then calculate it. Round answer to two decimals. must show work

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