The following table gives per capita personal income and percent of the population below the poverty level for ten states. Complete parts a though c. State Per Capita income (5) 43,798 44,890 43.257 Percent Below Poverty Level 16.4 A 12.1 14.3 41,698 10.4 44,219 10.5 36,591 36,380 45,390 33,623 33.912 14.3 16.2 6.7 10.3 16.8 OA Oc. D. 50000 50000 50000- 50000 45000- 45000 45000- 40000- 45000- 40000- aso00- 2 30000- 40000- 36000 230000 35000 40000- ở6 to is 20 35000- 2 30000- Percent in Poverty Percent in Povety Percent n Poverty O 10 15 20 Percent in Poverty b. State whether the two variables appear to be correlated, and if so, state whether the corelation is positive, negative, strong, or weak. OA The two variables appear to have weak negative correlation. OB. The two variables appear to have weak positive corelation. O. The two variables appear to have strong positive corelation. OD. The two variables appear to have strong negative corelation. OE The two variables do not appear to be correlated. e. Suggest a reason for the correlation or lack of comelation. OA Per capita personal income reflects the general income of the people in the state, so a higher per capita personal income implies there are more people living under the poverty line. OB States with a higher per capita personal income are more likely to have welfare programs meant to reduce the number of people living in poverty. OC Per capita personal income reflects the general income of the people in the state, so a higher per capita personal income imples there are fawer people living under the poverty line. OD. Since per capita income is an average, it would be affected by extremely high or low income values. This might make it a poor variable to pair with percent below the poverty line. Per Capta inoome (S) Per Capita Income ($)

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# Educational Resource on Correlation and Income Data

## Exploring Correlation in Income and Poverty

The following table provides data for ten states, focusing on per capita personal income and the percentage of the population living below the poverty level.

### Data Table

1. **States and Income Data:**
   - States: A, B, C, D, E, F, G, H, I, J
   - Per Capita Income ($): Ranges from 33,912 to 48,789
   - Percent Below Poverty Level: Ranges from 10.8% to 16.4%

### Graphical Analysis

#### Scatterplots

- **Graph A:**
  - Title: Per Capita Income vs. Percent in Poverty
  - Description: Displays a scatterplot showing the distribution of states based on income against the percent in poverty. The points show a spread without a clear linear pattern.

- **Graph B:**
  - Title: Per Capita Income vs. Percent in Poverty
  - Description: Similar to Graph A, but the axis range is different, providing a zoomed-out view. The spread appears random, indicating no clear linear correlation.

- **Graph C:**
  - Title: Per Capita Income vs. Percent in Poverty
  - Description: A scattered distribution of points, suggesting randomness in correlation.

- **Graph D:**
  - Title: Per Capita Income vs. Percent in Poverty
  - Description: Yet another perspective, indicating no apparent linear relationship.

### Analysis of Correlation

- **Question B: Correlation Evaluation**
  - **Option B:** The two variables appear to have weak negative correlation.

- **Question C: Reason for Lack of Correlation**
  - **Option D:** Since per capita income is an average, it could be influenced by extremely high or low values, making it a weak variable to pair with the percent below the poverty line.

### Insights

The analysis suggests that while examining per capita personal income against the poverty rate, one must consider the variability and extremities in income distribution. Average income alone may not provide a comprehensive view of the economic status, necessitating a deeper look into income equality and economic diversity within states.

This exercise is a practical demonstration of exploring statistical correlations and the challenges encountered in interpreting economic data.
Transcribed Image Text:# Educational Resource on Correlation and Income Data ## Exploring Correlation in Income and Poverty The following table provides data for ten states, focusing on per capita personal income and the percentage of the population living below the poverty level. ### Data Table 1. **States and Income Data:** - States: A, B, C, D, E, F, G, H, I, J - Per Capita Income ($): Ranges from 33,912 to 48,789 - Percent Below Poverty Level: Ranges from 10.8% to 16.4% ### Graphical Analysis #### Scatterplots - **Graph A:** - Title: Per Capita Income vs. Percent in Poverty - Description: Displays a scatterplot showing the distribution of states based on income against the percent in poverty. The points show a spread without a clear linear pattern. - **Graph B:** - Title: Per Capita Income vs. Percent in Poverty - Description: Similar to Graph A, but the axis range is different, providing a zoomed-out view. The spread appears random, indicating no clear linear correlation. - **Graph C:** - Title: Per Capita Income vs. Percent in Poverty - Description: A scattered distribution of points, suggesting randomness in correlation. - **Graph D:** - Title: Per Capita Income vs. Percent in Poverty - Description: Yet another perspective, indicating no apparent linear relationship. ### Analysis of Correlation - **Question B: Correlation Evaluation** - **Option B:** The two variables appear to have weak negative correlation. - **Question C: Reason for Lack of Correlation** - **Option D:** Since per capita income is an average, it could be influenced by extremely high or low values, making it a weak variable to pair with the percent below the poverty line. ### Insights The analysis suggests that while examining per capita personal income against the poverty rate, one must consider the variability and extremities in income distribution. Average income alone may not provide a comprehensive view of the economic status, necessitating a deeper look into income equality and economic diversity within states. This exercise is a practical demonstration of exploring statistical correlations and the challenges encountered in interpreting economic data.
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