Question

The income level of 4 individuals in country A are $150, $140, $210, and $220. The poverty line is $200. The HCR, PG, PGI, TPG. and SPGI are

A: 50%; 27.5; 20; 110; 0.058

B: 50%; 27.5; 13.75; 110; 0.038

C. 50%; 20; 13.75; 80; 0.038

D. 50%; 27.5; 16.75; 140; 0.068

Answer 1

HCR = no. of people below poverty line / total population = 2/4 = 50%

PG = sum of distances between poverty line and individual incomes of people below poverty line / total population = (200-150) + (200-140) / 4 = 110 / 4 = 27.5

PGI = sum of ( distances between poverty line and individual incomes of people below poverty line / poverty line ) / total population = ((200-150) / 200 + (200-140) / 200) / 4 = ( 0.25 + 0.3 ) / 4 = 13.75%

TPG = sum of distances between poverty line and individual incomes of people below poverty line = (200-150) + (200-140) = 50 + 60 = 110

Hence, Answer (B)