Continue to use the data on education and income from above on this problem. a.

Question

Continue to use the data on education and income from above on this problem. a. Calculate the conditional expectation of income for all levels of eduction, i.e. E(Income | Education = 12), E(Income | Education = 16), and E(Income | Education = 18) b. Alice just graduated high school, and does not really want to go to college. However, her father, Bryan, is insisting that she goes and says "You're not going to make as much money if you don't go,". Based on the data and your calculations, give one argument in favor of Bryan's point of view, and one in favor of Alices' point of veiw.

Explanation / Answer

3a) E(income | education = 12) = (45+54+43+81+42)/5 = 53

E(income | education = 16) = (57+43+68)/3 = 56

E(income | education = 18) = (71+77)/2 = 74

3b) argument in favor of Bryan's view - The expected income increases with increase in education level

Argument in favor of Alice - The individual with highest income is the having low education level

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.