Question: The table below shows the probability that a mother in a given part of the income distribution (given by the row) will have a daughter


The table below shows the probability that a mother in a given part of the income distribution (given by the row) will have a daughter in a given part of the income distribution (given by the column). So, for example, the daughter of a woman with income in the bottom third of the income distribution will herself have a 60% chance of being in the bottom third, a 25% chance of being in the middle third, and a 15% chance of being in the top third. Income Group of Daughter Income Group of Mother Bottom Third Middle Third Top Third Bottom Third 0.60 0.25 0.15 Middle Third 0.25 0.50 0.25 Top Third 0.15 0.25 0.60 What is the probability that the granddaughter (along the maternal line) of a woman in the middle third of the income distribution will herself be in the middle third of the income distribution? Show how you got your
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