Proportion agreeing: 'Most people can be trusted' (%) 80 50 40 30 20 10 0 SWE ■ FIN NOR DEN ■ JPN AUT BEL NLD CAN DEU ES

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Proportion Agreeing Most People Can Be Trusted 80 50 40 30 20 10 0 Swe Fin Nor Den Jpn Aut Bel Nld Can Deu Es 1 (187.91 KiB) Viewed 29 times

Proportion agreeing: 'Most people can be trusted' (%) 80 50 40 30 20 10 0 SWE ■ FIN NOR DEN ■ JPN AUT BEL NLD CAN DEU ESP CHE NZL ■ AUS IRL ITA GRC GBR ISR FRA 5 6 7 Income inequality (Ratio q5/q1) 8 PRT ■ USA SGP 2 3 9 10 Line of best fit: Y = 77.05 -6.53 X R² = 0.44 Figure 7 Trust in relation to income inequality for selected OECD countries Based on data from Wilkinson and Pickett (2009) The graph in Figure 7 plots a variable Y against a variable X for 23 OECD countries in 2005. Variable Y is an indicator of the level of trust in a country (measured by the percentage of the population who agree with the statement 'Most people can be trusted'). Variable X is a measure of income inequality (measured as the ratio of the disposable income of the top quintile, q5, to the disposable income of the bottom quintile, q1). Figure 7 also shows the regression equation for the line of best fit and the value of R2 which measures the strength of association between X and Y. This question has two parts; please answer both part (i) and part (ii). i) Examine Figure 7 and select the statements which are correct. (Choose one or more answers) The higher the level of income inequality, the smaller the proportion of respondents who trust each other. The more the population of a country agree that people can be trusted, the lower the income inequality in the country. Australia (AUS) and Canada (CAN) have a similar predicted proportion of people who agree with the trust statement. The positive R-squared contradicts the negative association between the two variables. ii) Using the regression equation, calculate the change in the percentage of people who agree with the trust statement (change in variable Y) associated with a doubling of the inequality measure (change in variable X) from 4 to 8. Give your answer to two decimal places. percentage points