The KwaZulu-Natal province is located on the Indian Ocean coast of South Africa and is home to approximately 20% of South Africa's population. The KwaZulu-Natal Income Dynamics Study (KIDS) surveyed a random sample of 275 households in 1993. These same households were surveyed again in 1998 and 2004. The advantage of this type of panel (or longitudinal) data is that it allows us to explore poverty and income distribution dynamics as we can see which households get ahead over time and which fall behind. The rest of this problem set asks you to use the KIDS data to calculate basic measures of income distribution and poverty and to explore the importance of assets in determining the level of expenditures.

The excel spreadsheet PS1_KIDS_N250) is the KIDS data we use for this part. Use the worksheet "Per Capita Expenditures" which contains columns representing monthly per-capita expenditures (in Rand, the South African currency) for each KIDS household for the years 1993, 1998 and 2004. These expenditure figures have been adjusted to the year 2000 South African price level, and they capture the value of all household expenditures, including the value of purchased goods and services as well as home-produced foods, the rental value of owner-occupied (or squatter) housing, etc. The data set includes information on the approximately 275 households that provided complete information in each of the three years.

****Link to access excel spreadsheet file needed:

https://docs.google.com/spreadsheets/d/1xEtSdu-3fHb7REulxyizzMnemdcdyUBWEtvOo9miPBM/edit?usp=sharing

1. Fill in the table below, where )7 denotes the sample mean of monthly per-capita expenditures; 5'2 is the sample variance; Var) is the variance of the sample mean; and EEG) is the standard error ofthe sample mean. (Round to the nearest integer. Do not provide decimals} Table 1. Statistics Calculation Table 2. The Evolution of Poverty in South Africa 1993 1998 2004 Headcount Index Income Gap Ratio Poverty Gap Ratio FGT-2