Please answer the following questions giving all details.

I  INDEX CARD QUESTION 1    The table below gives relative frequency distributions of educational attainment in the  US at decade intervals from 1940 to 1990. These are computed from the Public Use  Microdata Samples provided by the Census Bureau, which are random samples of  approximately one out of every one hundred US residents. (Source: “A Labor‐Income‐ Based Measure of the Value of Human Capital: An Application to the States of the  United States” by Casey B. Mulligan and Xavier Sala‐I‐Martin, NBER No. 5018, Feb.  1995.)     How much has median educational attainment changed from 1940 to 1990? Over what  decade was the largest gain made in median educational attainment? Compute median  educational attainment for each decade observation in order to answer this question.   Note: Each class interval extends up to the beginning of the one above it. In other words, use 0 to < 5 years, 5 to < 8 years, 8 to < 9 years, 9 to < 12, etc. The schooling categories “5-7 years” and “8 years” were merged in the 1990 census.

                                               1940  1950   1960   1970   1980   1990    Schooling      No School                           .028   .016   .008   .006   .004   .007    0‐4 years (0 to <5)      .095      .073   .038   .023   .012   .007  5‐7 years (0 to <8)      .177   .150   .096   .070   .036   .034  8 years (8 to <9)      .270   .196   .163   .099   .044  1‐3 years HS (9 to <12)    .160   .186   .207   .201   .131   .109  4 years HS (12 to <13)    .148   .219   .275   .346   .377   .300  1‐3 years college (13 to <16)  .060   .080   .104   .116   .184   .289  4+ years college (16+)    .062   .080   .108   .138   .212   .254    

3

INDEX CARD QUESTION 2 Below are two relative frequency distributions of per capita income in 1993. The first is unweighted (each of the 127 countries with available data counts as an observation). The second is weighted by population (each person in a country counts as an observation, so each country is weighted in proportion to its population). These data are from the 1995 World Development Report. a. In what percentage of countries in the sample was per capita income less than $200? Less

than $600? $10,000 or more? b. What percentage of the population in the sample lived in countries where per capita

income was less than $200? Less than $600? $10,000 or more?

4

Per capita income

Relative frequency

(unweighted)

Relative frequency (weighted)

0 to < 200 6.3 4.2

200 to < 400 15.0 24.2

400 to < 600 7.9 26.5

600 to < 1000 12.6 8.1

1000 to < 1500 11.0 3.3

1500 to < 2000 4.7 1.2

2000 to < 2500 4.7 5.9

2500 to < 5000 14.2 8.7

5000 to < 10,000 4.7 2.0

10,000 to < 15,000 3.1 1.0

15,000 to < 20,000 6.3 3.5

20,000 to < 25,000 6.3 8.6

25,000 to < 40,000 3.1 2.8 Note: These are relative frequency distributions with relative frequencies stated as percentages. Each column sums to 100 (except for rounding error).