Updated from 5/29/2014 to include the average IQ of each state based on IQ and the Wealth of Nations 2013 list.
NEW YORK (TheStreet) -- When writing an article ranking the "smartest" and "dumbest" states in the Union it is important to explain your methodology. This list is based on the level of education a certain percentage of the residents of each state achieves.
According to information compiled by the website infoplease.com, as of 2010 men with a BA make 60% more than their counterparts with a high school diploma -- $40,000 to $64,000 -- while women with BA's make 56.6% more than their counterparts with a lower level of education -- $30,000 to $47,000.
And the gulf is widening. Twenty years ago male college graduates only made 47.5% more than high school grads while female BA holders made 53% more. Over the lifetime of their careers, non-degree holders can expect to make 75% less than degree holders who can expect to make at least $2.7 million, according to a Census Bureau report.
For this reason there is some correlation between states with higher percentages of people with Bachelor's and advanced degrees also having fewer people living below the poverty line.
One would think that states with more colleges and universities per capita might do better on this list but that is not necessarily the case. Vermont -- number 8 on the smartest list -- has the most schools per capita with one university per 36,545.3 residents, while New Jersey -- number 6 on the smartest list -- has the second lowest number of schools per capita with one university per 526,764.8 residents.
Average SAT scores also do not accurately reflect the level of education as certain states with higher average SAT scores have a smaller percentage of students taking the test. North Dakotan students for example had an average SAT score of 1799 in 2013, good for second in the country. However, the state only had a 2% participation rate.
Intuitively states offering better jobs will attract better educated residents. The correlation between states offering better opportunities and the number of college graduates residing there is strong. Maryland -- number 3 on the smartest list -- leads the nation in median household income at $70,004 while Mississippi and West Virginia -- numbers three and one respectively on the dumbest list -- are at the bottom of the median household income list.
Here is a list of the 10 "smartest" and "dumbest" states based on percentage of the population with Bachelor's degrees...
10th Smartest: Minnesota
% of Population With Bachelor's Degrees or Higher: 33.5%
Median Household Income (2013): $60,702 (9th)
Average SAT Score (2013): 1780
Average IQ and Ranking: 103.7 (5th)
The land of 10,000 lakes is home to 31 of the top 1000 publicly traded companies in the country including Target (TGT) , SuperValu (SVU) and Best Buy (BBY) . The world famous Mayo Clinic is also located in the Minnesota and employs 30,000 people in the state. As of 2006, more than 90% of seniors in the Minnesota public school system graduated, while the state led the country with the highest average ACT score in 2007.