Problem Set 4.
Eco 1400 Sections 5 and 6
Monsoon 2024
1. The joint distribution of X and Y is as follows. X takes 3 values: 0,1,2 and Y (1,2, …6)
Y X 0 1 2
1 0.025 0.05 0.025
2 0.025 0.05 0.025
3 0.025 0.05 0.025
4 0.025 0.05 0.025
5 0.05 0.1 0.05
6 0.1 0.2 0.1
Find the marginal PMFs of X and Y. Also find E(X), E (Y) and E[min(X, Y, 1)]. What is E (X|Y =6)
2. Find the expected value and variance of a geometric random variable.
3. Suppose X and Y are two random variables. X can take values -1 and 1. Y can take
values 0 and 1. P(-1, 0) = P(1,1)= 0.5 and P(1, 0)= P(-1,1)=0
Find covariance between X and Y. Also, find the correlation between X and Y.
4. If E(X) =1 and V(X)=5, find E[(2 +X)2 ] and V(4+3X)
5. Suppose X ~ Bin (n, p)
Find the variance of
U= X
Y=2X
W = -X + 3
1
T = 4X – 2
6. A survey found that a typical family generates an average of 17.2 pounds of glass
garbage each year. Assume the standard deviation of the distribution is 2.5
pounds.
a. Find the probability that the mean of a sample of 55 families will be between 17
and 18 pounds.
b. Why can the central limit theorem be applied?
7. Assume SAT scores are normally distributed with mean 1518 and standard
deviation 325.
a. If one SAT score is randomly selected, find the probability that it is between
1440 and 1480.
b. If 16 SAT scores are randomly selected, find the probability that they have a
mean between 1440 and 1480.
c. Why can the central limit theorem be used in part (b) even though the sample
size does not exceed 30?
8. Assume that a test has a mean score of 75 and a standard deviation of 10.
Assume the distribution of scores is approximately normal.
a. What is the probability that a person chosen at random will make 100 or above
on the test?
b. What score should be used to identify the top 2.5%?
c. In a group of 100 people, how many would you expect to score below 60?
d. What is the probability that the mean of a group of 100 will score below 70?
9.
a) What is joint cdf of 𝑋 and 𝑋 at the point (𝑋,𝑋)=(1/2,1/3)?
b) Find the probability that the amount of gas sold is less than half
the amount that is stocked in a given week.
2
10. What is the probability that a person will flip a coin and land on heads eight times in
a row? Assume that the coin is fair and can either land on heads or tails.
11. A dice is rolled four times in a row. What is the probability that every one of the
four rolls will result in a result greater than 2? Assume the dice is fair and has six
sides.
12. Four people are playing a card game and each of them has their own 52-
card deck that has been randomly shuffled. What is the probability that all
four of the individuals will draw a face card at random?