Solved

A University of Kansas Study Shows the Following One-Generation Transition

Question 17

Multiple Choice

A University of Kansas study shows the following one-generation transition probabilities among four major income groups. In the long term, what percentage of male earners would you expect to find in each category  Father’s  Income  Son’s income  Bottom 10%1050%5090% Top 10% Bottom 10%0.60.320.070.011050%0.10.480.380.045090%0.040.380.480.1 Top 10%0.010.070.320.6\begin{array} { | l | l | l | l | l | } \hline { \begin{array} { l } \text { Father's } \\\text { Income }\end{array} } & { \text { Son's income } } \\ & \begin{array} { l } \text { Bottom } \\\mathbf { 1 0 \% }\end{array} & \mathbf { 1 0 - 5 0 \% } & \mathbf { 5 0 - 9 0 \% } & \begin{array} { l } \text { Top } \\\mathbf { 1 0 \% }\end{array} \\\hline \begin{array} { l } \text { Bottom } \\\mathbf { 1 0 \% }\end{array} & 0.6 & 0.32 & 0.07 & 0.01 \\\hline \mathbf { 1 0 - 5 0 \% } & 0.1 & 0.48 & 0.38 & 0.04 \\\hline \mathbf { 5 0 - 9 0 \% } & 0.04 & 0.38 & 0.48 & 0.1 \\\hline \begin{array} { l } \text { Top } \\\mathbf { 1 0 \% }\end{array} & 0.01 & 0.07 & 0.32 & 0.6 \\\hline\end{array}


A) Bottom 10%: 35.79% 10-50%: 14.21%
50-90%: 14.21%
Top 10%: 35.79%

B) Bottom 10%: 13.21%
10-50%: 36.79%
50-90%: 36.79%
Top 10%: 13.21%

C) Bottom 10%: 36.79%
10-50%: 13.21%
50-90%: 13.21%
Top 10%: 36.79%

D) Bottom 10%: 14.21%
10-50%: 35.79%
50-90%: 35.79%
Top 10%: 14.21%

E) Bottom 10%: 10%
10-50%: 40%
50-90%: 40%
Top 10%: 10%

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents