Question:
Joint Distribution of Employment status and College Graduation in the U.S. Population Aged 25-64, 1990
Unemployed (Y = 0) Employed (Y = 1) Total
|
Non-college grads (X=0)
|
0.045
|
0.709
|
0.754
|
|
College grads (X=1)
|
0.005
|
0.241
|
0.246
|
|
Total
|
0.050
|
0.950
|
1.000
|
a. Compute E(Y ).
b. The unemployment rate is the fraction of the labor force that is unemployed. Show that the unemployment rate is given by 1-E(Y ).
c. Calculate E(Y|X = 1) and E(Y |X = 0)
e. A randomly selected member of this population reports being unemployed. What is the probability that this work is a college graduate? A non-college graduate?
f. Are education achievement and employment status independent? Explain.