Chapter 2, Problem 50SE

Education Level and Household Income. The U.S. Census Bureau serves as the leading source of quantitative data about the nation’s people and economy. The following crosstabulation shows the number of households (1000s) and the household income by the level of education for heads of household having received a high school degree or more education (U.S. Census Bureau website, https://www.census.gov/data/tables/time-series/demo/income-poverty/cps-hinc.html).

TABLE 2.17 Betas for Dow Jones Industrial Average Companies

1. a. Construct a percent frequency distribution for the level of education variable. What percentage of heads of households have a master’s or doctoral degree?
2. b. Construct a percent frequency distribution for the household income variable. What percentage of households have an income of $50,000 or more?
3. c. Convert the entries in the crosstabulation into column percentages. Compare the level of education of households with a household income of under $25,000 to the level of education of households with a household income of $100,000 or more. Comment on any other items of interest when reviewing the crosstabulation showing column percentages.