Let S be the educational attainment of individuals in a town, with values S=0 for less...

50.1K

Verified Solution

Question

Statistics

Let S be the educational attainment of individuals in a town,with values S=0 for less than high school and S=1 for high schoolor above. Also, let Y be their individual annual income with valuesY=0 for less than $20,000, Y=1 for between $20,000 and $40,000, andY=2 for above $40,000. Consider now the following jointprobabilities:
SY Y=0 (less than $20K) Y=1 ($20K-$40K) Y=2 (more than $40K)
S=0 (Less than HS) 0.05 0.03 0.01
S=1 (HS or more) 0.22 0.36 0.33
A) Determine the expected value (mean) of the conditionalexpected level of educational attainment (given the various levelsof individual annual income).
B) Determine the expected level of educational attainment.

Answer & Explanation Solved by verified expert

3.6 Ratings (551 Votes)

ASYY0Y1Y2TotalS 0005003001009S 1022036033091Total0270390341PY0 total under Y0 027PY1 total under Y1 039PY2 total under Y2 034Expected value formula in common is We have to find the conditional expected level of educationalattainment given Y 0 Y1 Y 2First See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

SY	Y=0 (less than $20K)	Y=1 ($20K-$40K)	Y=2 (more than $40K)
S=0 (Less than HS)	0.05	0.03	0.01
S=1 (HS or more)	0.22	0.36	0.33