Econometrics: Joint Probability Distribution, Marginal Probability Distribution, Expected Value, Variance, Covariance, Conditional Distribution, Population Regression Line

Running head: Econometrics
Econometrics
Name of the student
Name of the university
Course name
Course ID:

1
Econometrics
Question 1: Joint probability distribution of education level X and income level Y
Row
Labels 20 40 60
Grand
Total
1 0.2 0.2 0 0.4
2 0.1 0.1 0.1 0.3
3 0 0.15 0.15 0.3
Grand
Total 0.3 0.45 0.25 1
Table 1: Joint probability distribution
In the above table, the joint probability distribution table is being calculated. The middle
portion of the table that has been highlighted has been the joint probability distribution. In order
to determine the joint probability distribution, education level has been put in the row, the
income or the Y value has been put in the column, and the values are the count of Y.

2
Econometrics
Question 2: Marginal probability distribution of education level X
Row
Labels 20 40 60
Grand
Total
1 0.2 0.2 0 0.4
2 0.1 0.1 0.1 0.3
3 0 0.15 0.15 0.3
Grand
Total 0.3 0.45 0.25 1
Table 2: Marginal probability distribution of education level X
The marginal probability distribution is going to highlight the row and column total. The
highlighted portion is the marginal probability distribution of education.
Question 3: Expected Value of education level
Row
Labels 20 40 60
Grand
Total
1 0.2 0.2 0 0.4
2 0.1 0.1 0.1 0.3
3 0 0.15 0.15 0.3
Grand
Total 0.3 0.45 0.25 1
Table 3: Expected value of X