The following table gives the joint probability distribution between employment status and college graduation among those either employed or looking for work (unemployed) in the working age U.S. population. Unemployed (Y=0) 0.0320 Employed (Y= 1) Total Non-college grads (X=0) College grads (X= 1) 0.6504 0.3496 0.6184 0.0078 0.0398 0.3418 Total 0.960 0.9998 The expected value of Y, denoted E(Y), is- (Round your response to three decimal places.) The unemployment rate is the fraction of the labor force that is unemployed. Show that the unemployment rate is given by 1- E(Y). Unemployment rate = 1--1- E(Y) = 1-0.960 = 0.0398. E(Y|X= 1) is (Round your response three decimal places.) E(Y|X=0) is. (Round your response three decimal places.) The unemployment rate for college graduates is, and the unemployment rate for non-college graduates is- (Round your responses to three decimal places.) A randomly selected member of this population reports being unemployed. The probability that this worker is a college graduate is, and the probability that this worker is a non-college graduate is. (Round your responses to three decimal places.) Are educational achievement and employment status independent? O A. Since Pr (X=0, Y= 1)# Pr (X= 0), educational achievement and employment status are not independent. O B. Since Pr (X=0, Y= 1) = Pr (X=0), educational achievement and employment status are independent. OC. Since Pr (X-0|Y= 1) = Pr (x=0), educational achievement and employment status are independent. O D. Since Pr (X=0|Y=1)#Pr (X=0), educational achievement and employment status are not independent.
The following table gives the joint probability distribution between employment status and college graduation among those either employed or looking for work (unemployed) in the working age U.S. population. Unemployed (Y=0) 0.0320 Employed (Y= 1) Total Non-college grads (X=0) College grads (X= 1) 0.6504 0.3496 0.6184 0.0078 0.0398 0.3418 Total 0.960 0.9998 The expected value of Y, denoted E(Y), is- (Round your response to three decimal places.) The unemployment rate is the fraction of the labor force that is unemployed. Show that the unemployment rate is given by 1- E(Y). Unemployment rate = 1--1- E(Y) = 1-0.960 = 0.0398. E(Y|X= 1) is (Round your response three decimal places.) E(Y|X=0) is. (Round your response three decimal places.) The unemployment rate for college graduates is, and the unemployment rate for non-college graduates is- (Round your responses to three decimal places.) A randomly selected member of this population reports being unemployed. The probability that this worker is a college graduate is, and the probability that this worker is a non-college graduate is. (Round your responses to three decimal places.) Are educational achievement and employment status independent? O A. Since Pr (X=0, Y= 1)# Pr (X= 0), educational achievement and employment status are not independent. O B. Since Pr (X=0, Y= 1) = Pr (X=0), educational achievement and employment status are independent. OC. Since Pr (X-0|Y= 1) = Pr (x=0), educational achievement and employment status are independent. O D. Since Pr (X=0|Y=1)#Pr (X=0), educational achievement and employment status are not independent.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Transcribed Image Text:The following table gives the joint probability distribution between employment status and college graduation among those either employed or looking for work (unemployed) in the working age U.S. population.
Unemployed
(Y= 0)
Employed
(Y= 1)
Total
Non-college grads (X= 0)
0.0320
0.6184
0.6504
0.3418
0.960
College grads (X= 1)
0.0078
0.3496
Total
0.0398
0.9998
The expected value of Y, denoted E(Y), is
(Round your response to three decimal places.)
The unemployment rate is the fraction of the labor force that is unemployed. Show that the unemployment rate is given by 1- E(Y).
Unemployment rate = 1-
= 1- E(Y) = 1 - 0.960 = 0.0398.
E(Y|X= 1) is
(Round your response to three decimal places.)
E(Y|X=0) is (Round your response to three decimal places.)
The unemployment rate for college graduates is
and the unemployment rate for non-college graduates is. (Round your responses to three decimal places.)
A randomly selected member of this population reports being unemployed. The probability that this worker is a college graduate is , and the probability that this worker is a non-college graduate is. (Round your responses to three decimal places.)
Are educational achievement and employment status independent?
A. Since Pr (X=0, Y= 1) # Pr (X=0), educational achievement and employment status are not independent.
B. Since Pr (X= 0, Y= 1) = Pr (X=0), educational achievement and employment status are independent.
O C. Since Pr (X=0| Y= 1)= Pr (X=0), educational achievement and employment status are independent.
D. Since Pr (X= 0 | Y= 1)# Pr (X=0), educational achievement and employment status are not independent.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 6 steps
Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education