Properties of scaling: Suppose that you want to examine the relationship between wages and experience measured in months rather than years.
a) What is the variance of experience in months? Compare this to Ib).
b) What is the covariance of wages and experience in months? Compare this to ld).
c) What is the correlation of experience and wages? Compare this to 1e).
Prove mathematically that the Cov(cX,Y) = c * Cov(X,Y) using the properties of summation from class. Show each step of your proof.