The poverty line in the country of Inequalia is $10,000.The distribution of income for Inequalia is as follows:

The poverty rate in Inequalia is

Question

The poverty line in the country of Inequalia is $10,000.The distribution of income for Inequalia is as follows:

The poverty rate in Inequalia is

Quizplus · Accepted Answer

To calculate the poverty rate, we need to find the percentage of population whose income is below the poverty line of $10,000. Looking at the frequency table, we can see that for the income range $0-$9,999, the cumulative frequency is 10%. Therefore, the percentage of population below the poverty line is 27.8% (100% - 72.2%). Therefore, the answer is C.

The Poverty Line in the Country of Inequalia Is $10,000