Question

Let S be the educational attainment of individuals in a town, with values S=0 for less than high school and S=1 for high school or above. Also, let Y be their individual annual income with values Y=0 for less than $20,000, Y=1 for between $20,000 and $40,000, and Y=2 for above $40,000. Consider now the following joint probabilities:

S\Y	Y=0 (less than $20K)	Y=1 ($20K-$40K)	Y=2 (more than $40K)
S=0 (Less than HS)	0.05	0.03	0.01
Y=1 (HS or more)	0.22	0.36	0.33

A) Determine the conditional standard deviation of the level of educational attainment given that the individual annual income is less than $20,000.

B) Determine the conditional standard deviation of the level of educational attainment given that the individual annual income is between $20,000 and $40,000.

C) Determine the conditional standard deviation of the level of educational attainment given that the individual annual income is higher than $40,000.

Answer 1