Question

OECD consists of 20 industrialized countries, the prediction equation relating y = child poverty rate (in percentage points) to x = social expenditure as a percentage of gross domestic product (GDP) is y = 22-1.3x. In 2000, the actual child poverty rate ranged from 2.8% (in Finland) to 21.9% (in the U.S.). Social expenditure as a percentage of GDP ranged from 2% (in the United States) to 16% (in Denmark).

Using the linear prediction equation and plugging in the actual x-values (social expenditure rates) provided above, find the predicted child poverty rates for the United States and for Denmark. The x-values for both of these countries are provided above in the description of the study. (Note: You do not need to convert the percentages into proportions before or after plugging them into the equation.)

Predicted child poverty rate for U.S.:

Predicted child poverty rate for Denmark:

Answer 1

y = child poverty rate (in percentage points)

x = social expenditure as a percentage of gross domestic product (GDP)

Prediction Equation is :  y = 22 - 1.3x

For U.S

x = 2%

we get the predicted y value by pluging x=2 in the equation y = 22 - 1.3x

y = 22 - 1.3 2

y = 19.4%

Answer: Predicted child poverty rate for U.S is 19.4%

For Denmark

x = 16%

we get the predicted y value by pluging x=16 in the equation y = 22 - 1.3x

y = 22 - 1.3 16

y = 1.2%

Answer: Predicted child poverty rate for Denmark is 1.2%