Exercise 4.7
Using the results of ex-4.6, compute the expected non-food expenditures of those whose level of total expenditures equals the food poverty line estimated in \ref{ex-4.1}. By adding these expected non-food expenditures to the food poverty line, estimate
a third global poverty line.

Answer

 

Share of non food expenditures

=

Non Food expenditures

=

 732.19 - 304.67

=

0.5838

Total expenditures

732.19

 
Non food expenditures

=

0.5838*304.67

=

177.8981

Total poverty line
Poverty line

=

Food expenditures  +    Non food expenditures

=

304.68+177.90

=

482.5781