Question

Given below is a bivariate distribution for the random variables x and y. f(x, y) x...

Given below is a bivariate distribution for the random variables x and y.

f(x, y) x y
0.1 90 90
0.5 30 40
0.4 50 70

a. Compute the expected value and the variance for x and y.

E(x) =
E(y) =
Var(x) =
Var(y) =

b. Develop a probability distribution for x + y. Round your answers to one decimal place.

x + y f(x + y)
180
70
120

c. Using the result of part (b), compute E(x + y) and Var(x + y).

E(x + y) =
Var(x + y) =

d. Compute the covariance and correlation for x and y. If required, round your answers to two decimal places.

Covariance =
Correlation =

The random variables x and y are - Select your answer -positively relatednegatively relatedunrelatedItem 12 .

e. The variance of the sum of x and y is - Select your answer -biggersmallerthe sameItem 13  than the sum of the individual variances.

By how much?

- Select your answer -Var(x+y) is less than Var(x) + Var(y) by twice the covariance Var(x+y) equals Var(x) + Var(y) Var(x+y) is greater than Var(x) + Var(y) by twice the covariance

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