Properties of scaling. Suppose that you want to experience measured in months rather than years ) What is the variance of experience in months

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Properties of scaling. Suppose that you want to examine the relationship between wages and
experience measured in months rather than years.
a) What is the variance of experience in months? Compare this to 1b).
b) What is the covariance of wages and experience in months? Compare this to 1d).
c) What is the correlation of experience and wages? Compare this to le).
d) Prove mathematically that the Corr(cX,Y) = Corr(X,Y) using the properties of summation
from class. Show each step of your proof.
Transcribed Image Text:Properties of scaling. Suppose that you want to examine the relationship between wages and experience measured in months rather than years. a) What is the variance of experience in months? Compare this to 1b). b) What is the covariance of wages and experience in months? Compare this to 1d). c) What is the correlation of experience and wages? Compare this to le). d) Prove mathematically that the Corr(cX,Y) = Corr(X,Y) using the properties of summation from class. Show each step of your proof.
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