Stats

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Refer to Figure .1. Several observations can be made without any in depth analysis

· The graph is bimodal and seems almost to fluctuate periodically (Which is not surprising considering that most population data is periodic)

· The highest point (also indicated by Table .1) is 6% and the lowest, %

· From 18 to 1, there is a steep climb upwards, indicating a rising level in the number of poor people.




· From 16 to the present moment, the percentage of the population occupied by poor individuals and families decreased steadily.

The final observation is the most important, though we will present another graph before any further analysis.

Similar to the previous graph, we now present Figure ., detailing the percentage of the population occupied by the ‘rich’ from 180 to 001. We are able to clearly see these factors from the graph

· The plot, like the previous plot seems almost periodic, falling and dropping once it reaches certain maximum and minimums.

· The highest point (also indicated in Table .1) is 1% while the lowest is 8%

· From 18 to 18, there was a steady increase in the percentage occupied by rich family units.

· From 18 to 1, there was a steady decrease in the percentage occupied by rich family units.

· From 1 to the last datum at 001, there was a steady increase in the percentage occupied by rich families units.

Again, the last observation is the most important since it pertains to the present moment more so than the other intervals.

In the graph of the poor percentage of the population, we noticed that there was a steady decrease from 16 to the present moment. In other words, for such a rich-poor gap to widen from 16 to the present moment, we would require the percentage of rich people to grow at a much faster rate (to compensate for the decrease in poor percentage). However, from 16 to 001, as the poor percentage decreased, the rich percentage increased indicating a closing gap, contrary to what the original statement implied. All this will be clarified in the following section when we study the actual gap. That is, the delta between the percentage occupied by the rich and the percentage occupied by the poor.

§ The Delta

We now study the most important factor in determining the validity of the statement The actual gap itself. Refer to Table .1. Next to the column detailing the percentage of the population occupied by the rich and the poor, the size of the gap was determined using the equation,

Gap Size = | % Occupied by Poor - % Occupied by Rich |

Notice that the equation only takes in account the size of the gap or the distance between the two points if they were to lie on a number line, not the direction. Thus, if the population were occupied by % Poor and 5% Rich (% � 5% = -%), this would be a gap size equivalent to a population occupied by 5% Poor and % Rich.

From the data on Table .1, a graph was compiled displaying the size of the gap from 180 to 001. This is detailed in Figure .1. Notice that

· From 184 to 18, the size of the gap decreased steadily.

· From 18 to 1, the size of the gap increased steadily (There is a minor fluctuation caused by the data from 11 and 1

· From 1 to 16, the size of the gap increased again and from 16 onward, the size of the gap decreased, reaching an absolute minimum during 001 with a 1% gap.

Our original hypothesis was that the statement was referring to the present moment (That is 00) and the surrounding years (Approximately +- 5 years). However, we will now use our gap data and other qualitative data to disprove this hypothesis and suggest another.

Along with the “Show me the Money” handout, we were given two links

http//www.statcan.ca/Daily/English/00078/d00078a.htm

And,

http//www.varsity.utoronto.ca/archives/11/oct6/news/youth.html

However, from the first link written by Statistics Canada, the date displayed under the title is “180 � 17”. The second article does not contain a date, but all the dates are also pre-16.

Although we are not going to attempt any in depth analysis of other factors that may influence the size of the gap (For example, we assume inflation is not a problem, economic situation is stable, etc.), the rapid decrease in the gap size from 16 to 001 noted above), coupled with the pre-17 analysis included with the “Show Me the Money” handout implies that the statement of “The gap between the rich and the poor in Canada is widening” is actually referring to the pre-17 (or 16) era.

Therefore, we wish to rephrase our thesis as the following,

The gap between the rich and the poor in Canada was widening from 18 to 16

The purpose of the rest of this paper will be to prove or disprove this statement

Using Excel, we limit our data only to the years of 18 to 16 and a line of best fit was constructed using the Least Squares Method. The equation is

Size of Gap (%) = 0.61(Year) � 1008.7



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