Problem 1E What is meant by a marginal distribution? What is meant by a conditional distribution?
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Textbook Solutions for Statistics: Informed Decisions Using Data
Question
Unemployment Rates Recessions are an economic phenomenon that are often defined as two consecutive quarters of reduced national output. One measure to assess the severity of a recession is the rate of unemployment. The table shows the number of employed and unemployed residents of the United States at the peak of each recession (in thousands). Recession of 1982 Recession of 2009 Employed 98.9 130.1 Unemployed 11.3 14.5 Source: Bureau of Labor Statistics (a) Determine the unemployment rate for each recession. Which recession appears worse as measured by unemployment rate? Note: Unemployment rate = unemployed/(employed + unemployed). The data in the table above do not account for level of education. The following data show the unemployment rate by level of education for each recession.Recession of 1982 Recession of 2009Less thanhigh schoolHigh school Bachelors degreeor higherLess thanhigh schoolHigh school Bachelors degreeor higherEmployed 20.3 58.2 20.4 10.0 76.7 43.4Unemployed 3.9 6.6 0.8 2.0 10.3 2.2Source: Bureau of Labor Statistics(b) Determine the unemployment rate for each level of education for both recessions.(c) Draw a bar graph of the conditional distribution from part (b).(d) Write a report that suggests the recession of 2009 is worse than that of 1982.
Solution
The first step in solving 4.4 problem number 30 trying to solve the problem we have to refer to the textbook question: Unemployment Rates Recessions are an economic phenomenon that are often defined as two consecutive quarters of reduced national output. One measure to assess the severity of a recession is the rate of unemployment. The table shows the number of employed and unemployed residents of the United States at the peak of each recession (in thousands). Recession of 1982 Recession of 2009 Employed 98.9 130.1 Unemployed 11.3 14.5 Source: Bureau of Labor Statistics (a) Determine the unemployment rate for each recession. Which recession appears worse as measured by unemployment rate? Note: Unemployment rate = unemployed/(employed + unemployed). The data in the table above do not account for level of education. The following data show the unemployment rate by level of education for each recession.Recession of 1982 Recession of 2009Less thanhigh schoolHigh school Bachelors degreeor higherLess thanhigh schoolHigh school Bachelors degreeor higherEmployed 20.3 58.2 20.4 10.0 76.7 43.4Unemployed 3.9 6.6 0.8 2.0 10.3 2.2Source: Bureau of Labor Statistics(b) Determine the unemployment rate for each level of education for both recessions.(c) Draw a bar graph of the conditional distribution from part (b).(d) Write a report that suggests the recession of 2009 is worse than that of 1982.
From the textbook chapter Contingency Tables and Association you will find a few key concepts needed to solve this.
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