Refer to the linear regression on Slide 25 of Part 2.1 ("Example: Poverty rate and overall mean"). What is the expected poverty rate of a country with a mean income per person of $500? (Hint: take note of natural logs, and show your work to receive partial credit even if your final answer is wrong).

Example: Poverty rate and overall mean (EOP Box 1.19) InH 5 4 InH = 9.29 - 1.421nM + e 3 H = poverty rate Log of the poverty rate (% below $1.25 a day) M= mean income 2 0 InM 3.2 3.6 4.0 4.4 4.8 5.2 5.6 6.0 6.4 Log of mean household consumption or income per person