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In: Statistics and Probability

2.The following table contains data on the joint distribution of age(Age​)and average hourly earnings​(AHE​)for 25 to...

2.The following table contains data on the joint distribution of age(Age​)and average hourly earnings​(AHE​)for 25 to 34​ year-old full-time workers with an educational level that exceeds a high school diploma in 2012. Download the data from the table by clicking the download table icon.A detailed description of the variables used in the dataset is available here

. Use a statistical package of your choice to answer the following questions.

Compute the marginal distribution of

Age.

Marginal distribution of Age

Age​ (years)

25

26

27

28

29

30

31

32

33

34

​=

.0754

.0797

.0947

.0953

.0983

.1105

.1105

.1134

.1134

.1085

A.Compute the mean of AHE for Age​ = 31​; that​ is, compute, E( (AHE Age=31)=.

B. Use the law of iterated expectations to compute the mean of AHE​; that is compute E(AHE)

c. Compute the variance of AHE​; that is compute   var(AHE​).

D. Compute the covariance between AHE and Age​; that is compute cov (AHE​, Age​)

F. Compute the correlation between AHE and Age​; that is compute corr(AHE​, Age​)

Solutions

Expert Solution

orchestra answered 10 months ago
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