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Question 2 This question requires use of the data in the following table: household i household income nurnberadult numberchildre has electricit - The same data
Question 2 This question requires use of the data in the following table: household i household income nurnberadult numberchildre has electricit - The same data is available in an Excel le called question2data.xlsx. In this data set, each row is a separate household in a village. Please show your work. If you use Excel, you can upload the Excel sheet containing your calculations. If you don't use Excel (Le. if you prefer to use a calculator etc}, write out a few sentences or equations to demonstrate how you arrived at the number in your answer. a. [2 points] Let's start out by measuring poverty. Assuming the poverty line is 150 Rand per person per month as our poverty line, what percent of households live below the poverty line? (To keep it simple, ignore economies of scale and adult equivalents.) b. [2 points] Compute the poverty gap (Pg) measure. c. [2 points] Compute the poverty rate like in part a, but now add an economics of scale parameter of B=.9. How does the poverty rate change (use 150 rand for your poverty line still)? What if you use a parameter of 6:01? d. [2 points] And let's not forget about adult equivalents! Now compute the poverty rate adjusting for adult equivalents (but not economies of scale) so that children (age 16 or under) are only count ?0% as much as an adult (1:01}. How does the poverty rate change? What if children only count half as much as an adult
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