The poverty line in the country of Inequalia is $7,800. The distribution of income for Inequalia is as follows: Number of Families Income
200 less than $5,000
300 between $5,000 and $10,000
500 between $10,000 and $15,000
700 between $15,000 and $20,000
300 over $20,000
The poverty rate in Inequalia is

Question

The poverty line in the country of Inequalia is $7,800. The distribution of income for Inequalia is as follows: Number of Families Income
  200 less than $5,000
300 between $5,000 and $10,000
500 between $10,000 and $15,000
700 between $15,000 and $20,000
300 over $20,000
 The poverty rate in Inequalia is

Quizplus · Accepted Answer

To calculate the poverty rate, we need to find the number of families living below the poverty line of $7,800. We know that there are 1,000 families in total. Out of those, we can determine the number of families that fall in the income range of less than $7,800, which is the poverty line.

Number of families with income less than $5,000 = 200
Number of families with income between $5,000 and $7,800 = [($7,800-$5,000)/($10,000-$5,000)]*300 = 180
Total number of families below the poverty line = 200 + 180 = 380

Therefore, the poverty rate in Inequalia is (380/1,000) * 100 = 38 percent, which falls between 10 percent and 25 percent. So, the best choice is B.

The Poverty Line in the Country of Inequalia Is $7,800