Suppose 1 in 100 workers die on the risky job each year, while no workers die on the safe job each year. Moreover, the average salary for the safe job is $50,000 and for the risky job is $60,000. a. What is the compensating wage differential of the risky job? b. What is the implied statistical value of a life of a worker on the risky job? Please help ?
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
Suppose 1 in 100 workers die on the risky job each year, while no workers die on the safe job each year. Moreover, the average salary for the safe job is $50,000 and for the risky job is $60,000.
a. What is the compensating wage differential of the risky job?
b. What is the implied statistical value of a life of a worker on the risky job?
Please help ?
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