The distribution of income for Dismal is as follows: Number of Families Income
1,000 less than $10,000
2,000 between $10,000 and $20,000
2,000 between $20,000 and $30,000
800 between $30,000 and $40,000
200 over $40,000
If the poverty rate in Dismal is 50 percent, what is the poverty line in Dismal?

Question

The distribution of income for Dismal is as follows: Number of Families Income
  1,000 less than $10,000
2,000 between $10,000 and $20,000
2,000 between $20,000 and $30,000
800 between $30,000 and $40,000
200 over $40,000
 If the poverty rate in Dismal is 50 percent, what is the poverty line in Dismal?

Quizplus · Accepted Answer

The poverty line is defined as the income level below which a family is considered to be living in poverty. If the poverty rate in Dismal is 50%, then half of the families in Dismal earn less than the poverty line, and half earn more. Given the distribution of income, we can see that 3,000 families (1,000 + 2,000) earn less than $20,000. Therefore, the poverty line must be somewhere between $10,000 and $20,000. Since we know that the poverty rate is 50%, the poverty line must be exactly halfway between these two income levels, which is $15,000. Therefore, the correct answer is B, $20,000.

The Distribution of Income for Dismal Is as Follows: Number