2.The following table contains data on the joint distribution ofage(Age​)and average hourly earnings​(AHE​)for 25 to 34​ year-oldfull-time workers with an educational level that exceeds a highschool diploma in 2012. Download the data from the table byclicking the download table icon.A detailed description of thevariables used in the dataset is available here
. Use a statistical package of your choice to answer thefollowing questions.
Compute the marginal distribution of
Age.
Marginal distribution of Age |
| | Age​ (years) | | | |
| | 25 | 26 | 27 | 28 | 29 | 30 | 31 | 32 | 33 | 34 |
​= | .0754 | .0797 | .0947 | .0953 | .0983 | .1105 | .1105 | .1134 | .1134 | .1085 |
A.Compute the mean of AHE for Age​ = 31​;that​ is, compute, E( (AHE Age=31)=.
B. Use the law of iterated expectations to compute the mean ofAHE​; that is compute E(AHE)
c. Compute the variance of AHE​; that is compute  var(AHE​).
D. Compute the covariance between AHE andAge​; that is compute cov (AHE​,Age​)
F. Compute the correlation between AHE andAge​; that is compute corr(AHE​,Age​)
