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    Closing the Digital Divide

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    In a brainstorming session at WidgeCorp, where no idea is too outrageous, you're discussing penetration in the school lunch market. Ideas around school lunch subsidies, Internet subsidies, and Internet target marketing are being discussed. At the end of the meeting, the group asks you to prove or disprove some assumptions by looking at correlations.

    Read the article "Closing the Digital Divide: Internet Subsidies in Public Schools by Austan D. Goolsbee and Jonathan Guryan." Based on the findings as reported in this article, prepare a chart similar to the one in the downloaded file to indicate if the correlation between Variables A and B were found to be positive, negative, or minimal.

    Explain what it means if the correlation of 2 variables is positive, negative, or minimal (close to 0) and give an example of each.

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    Solution Preview

    See the attached file.

    Variable A
    Number of school lunch eligible students in the school

    Variable B
    Amount of funding received by the school for federal and state education-related programs

    Correlation: positive, negative, minimal?
    Positive Meaning: As the number of school lunch eligible pupils increases, the amount of funding received by the school for federal and state education-related programs also increases.

    Variable A
    Impact of subsidy received

    Variable B
    Age of students at school

    Positive Meaning: The impact of subsidy received is ...

    Solution Summary

    The solution discusses closing the digital divide.