Age and Hourly Earnings Age Hourly Earnings (AHE) 25 26 27 28 29 30 31 32 33 34 5 0.001431346 0.001942542 0.001635825 0.001942542 0.00102239 0.00102239 0.001124629 0.001226868 0.000511195 0.001124629 6 0.001431346 0.000613434 0.001533586 0.001431346 0.001124629 0.001226868 0.001431346 0.000408956 0.001329107 0.000408956 7 0.001431346 0.001942542 0.000817912 0.001533586 0.000920151 0.001738064 0.00102239 0.000920151 0.000613434 0.001124629 8 0.002351498 0.001533586 0.001738064 0.00102239 0.001329107 0.000817912 0.001329107 0.001840303 0.001226868 0.001329107 9 0.002351498 0.002964932 0.002044781 0.002351498 0.002249259 0.001942542 0.001635825 0.001226868 0.001635825 0.001226868 10 0.0041918 0.004805235 0.003680605 0.004294039 0.003680605 0.0041918 0.003578366 0.002964932 0.002760454 0.00214702 11 0.003271649 0.003476127 0.002862693 0.002453737 0.002453737 0.003067171 0.002044781 0.002862693 0.002964932 0.002249259 12 0.006850015 0.006134342 0.005623147 0.004396278 0.005827625 0.005520908 0.004805235 0.005009713 0.005009713 0.004600757 13 0.003885083 0.003680605 0.005111952 0.003885083 0.003578366 0.003987322 0.003067171 0.003271649 0.003680605 0.003373888 14 0.005827625 0.004907474 0.007054493 0.006134342 0.004702996 0.006645537 0.006747776 0.005827625 0.004907474 0.005418669 15 0.003476127 0.00316941 0.004089561 0.003578366 0.003987322 0.005111952 0.003987322 0.005009713 0.002351498 0.003578366 16 0.002658215 0.003271649 0.0041918 0.003067171 0.004805235 0.003271649 0.004396278 0.003680605 0.00316941 0.00214702 17 0.004702996 0.005009713 0.006441059 0.00633882 0.005827625 0.004702996 0.005827625 0.007054493 0.004805235 0.005214191 18 0.002658215 0.00316941 0.003578366 0.002964932 0.00316941 0.003680605 0.003680605 0.003476127 0.003680605 0.003782844 19 0.003680605 0.004089561 0.005214191 0.004805235 0.006032103 0.006645537 0.00633882 0.005827625 0.006850015 0.004600757 20 0.002964932 0.002862693 0.003067171 0.002760454 0.003680605 0.003885083 0.0041918 0.005009713 0.005418669 0.003373888 22 0.003885083 0.004600757 0.005418669 0.006543298 0.007054493 0.007974645 0.006645537 0.007974645 0.007361211 0.007054493 24 0.004089561 0.005725386 0.006747776 0.00950823 0.007667928 0.007872406 0.011348533 0.007565689 0.009712708 0.008997035 26 0.00316941 0.00316941 0.005009713 0.003476127 0.004498518 0.005418669 0.004498518 0.00531643 0.004600757 0.005827625 28 0.002964932 0.002658215 0.003680605 0.004600757 0.004805235 0.006850015 0.005725386 0.006543298 0.006236581 0.007872406 30 0.001942542 0.002249259 0.004089561 0.003476127 0.005214191 0.00531643 0.005725386 0.006032103 0.006032103 0.006236581 35 0.002555976 0.002658215 0.004907474 0.006952254 0.006236581 0.007054493 0.006236581 0.008281362 0.010326143 0.006850015 40 0.001329107 0.002249259 0.001635825 0.002862693 0.003067171 0.004294039 0.004396278 0.006134342 0.004702996 0.005214191 45 0.00102239 0.000511195 0.001431346 0.001533586 0.001738064 0.003271649 0.003885083 0.003782844 0.005214191 0.004600757 50 0.000511195 0.000511195 0.001226868 0.001226868 0.001226868 0.001738064 0.002760454 0.002249259 0.002555976 0.003067171 55 0.000102239 0.000817912 0.000613434 0.000817912 0.000511195 0.00102239 0.000817912 0.001124629 0.001533586 0.001738064 60 0.000204478 0.000613434 0.000306717 0.000511195 0.000715673 0.000817912 0.001124629 0.000920151 0.001738064 0.001329107 65 0.000102239 0.000204478 0.000102239 0.000102239 0.000511195 0.000204478 0.000408956 0.000204478 0.000715673 0.000817912 70 0.000306717 0.000204478 0.000817912 0.000715673 0.000613434 0.001226868 0.00214702 0.001635825 0.001738064 0.00316941

The following table contains data on the joint distribution of age (Age) and average hourly earnings (AHE) for 25 to 34 year-old full-time workers with an educational level that exceeds a high school diploma in 2012. Download the data from the table by clicking the download table icon 2. A detailed description of the variables used in the dataset is available here . Use a statistical package of your choice to answer the following questions. Compute the marginal distribution of Age. Marginal distribution of Age 25 0.0754 26 0.0797 27 0.0947 Age (years) 28 29 0.09530.0983 30 0.1105 31 32 0.1109 | 0.1134 33 0.1134 34 0.1085 = (Round your response to four decimal places) Compute the mean of AHE for Age = 34; that is, compute, E(AHE |Age = 34). E(AHE (Age = 34) = 26.2512 (Round your response to four decimal places) Below is the plot of the mean of AHE versus Age. Below is the plot of the mean of AHE versus Age. Mean of AHE 307 0 0 0 0 0 0 0 0 0 180 Age Are average hourly earnings and age related? A. Yes, the mean of AHE and Age appear to be positively related. O B. No, the mean of AHE and Age do not seem to be related. O C. Yes, the mean of AHE and Age appear to be negatively related. Use the law of iterated expectations to compute the mean of AHE; that is compute E(AHE). E(AHE) = 22.6914 (Round your response to four decimal places) Compute the variance of AHE; that is compute var(AHE). var(AHE) = 154.1000 (Round your response to four decimal places) Compute the covariance between AHE and Age; that is compute cov(AHE, Age)