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 What is the covariation of X and Y? Hint: That is what one of the numbers of the total columns is called. Throughout calculating, and for the final answer, round to two decimals. What is the slope? Interpret the slope between population size and income inequality in a complete sentence. What is the y intercept?

Linear Algebra: A Modern Introduction

4th Edition

ISBN:9781285463247

Author:David Poole

Publisher:David Poole

Chapter4: Eigenvalues And Eigenvectors

Section4.6: Applications And The Perron-frobenius Theorem

Problem 22EQ

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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

What is the covariation of X and Y? Hint: That is what one of the numbers of the total columns is called. Throughout calculating, and for the final answer, round to two decimals.

What is the slope? Interpret the slope between population size and income inequality in a complete sentence.

What is the y intercept?

Definition Definition Measure of how two random variables change together. Covariance indicates the joint variability or the directional relationship between two variables. When two variables change in the same direction (i.e., if they either increase or decrease together), they have a positive covariance. When the change is in opposite directions (i.e., if one increases and the other decreases), the two variables have a a negative covariance.

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