Question

13. Explain, why you have to multiply the probability of X and the probability of Y, when you want to calculate a probability of both X and Y occurring together. For example, the probability of obtaining an A grade in both the midterm and the final exam using an example AND/OR diagram.

Answer #1

This is simple example of operation between two events in probability theory.

When solving for the probability why do I have to multiply the
individual probabilities and then add them?
Let X = B(3,2/3) and Y = B(4,½). Compute P(X = Y).

1. Stocks X and Y have the following probability
distributions:
Returns
Probability
X
Y
0.10
-5%
-22%
0.20
-2%
-3%
0.30
1%
6%
0.20
4%
17%
0.20
7%
24%
(8 points)
If you form a 50-50 portfolio of the two stocks, calculate the
expected rate of return and the standard deviation for the
portfolio. (Remember, you must
calculate a new range of outcomes for the portfolio.)
Briefly explain why the standard deviation for the portfolio
would be less than the...

Using a real life example explain where the formula for
conditional probability [P(B|A) = P(A ∩B) P(A) ] comes from. Hence,
or otherwise, explain why, for independent events, the probability
of the two events both occurring is the same as the probability of
the first event occurring multiplied by the second event
occurring.

1) Generate a data set with three variables (X, Y and Z). X and
Y have 10 observations for each (N=10), and Z has 13 observations
(N=13). Each observation should have two digits (such as “83” or
“8.3”).
2) Draw a stem-and-leaf display for variable Z only and draw a
box plot display for variable Z after specifying the 5 numbers
(UEX, LEX, FU, FL, MD).
3) Calculate the mean and standard deviation for variable X
4) Calculate the mean...

Stocks X and Y have the following probability distributions of
expected future returns:
Probability
Stock X
Stock Y
0.15
-5%
-8%
0.35
7%
10%
0.30
15%
18%
0.20
10%
25%
Expected return
Standard deviation
6.42%
Correlation between Stock X and Stock Y
0.8996
i. Calculate the expected return for each stock.
ii. Calculate the standard deviation of returns for Stock Y.
iii. You have $2,000. You decide to put $500 of your money in
Stock X and the rest in...

Stocks X and Y have the following probability distributions of
expected future returns:
a. Calculate the expected rate of return for Stock X and Y
respectively.
b. Calculate the standard deviation of expected returns for X
and Y respectively.
c. What are the CV for both X and Y respectively?
Probability
X
Y
Week
0.1
-10%
-35%
Below
Ave
0.2
2%
0
Average
0.4
12%
20%
Above
Ave
0.2
20%
25%
Strong
0.1
38%
45%
Expected
Return
Standard
Deviation
CV

Stocks X and Y have the following probability distributions of
expected future returns:
Probability
X
Y
0.1
-6%
-24%
0.2
5
0
0.4
15
20
0.2
22
25
0.1
35
35
Calculate the expected rate of return, rY, for Stock Y (rX =
14.30%.) Round your answer to two decimal places.
%
Calculate the standard deviation of expected returns, ?X, for
Stock X (?Y = 16.32%.) Round your answer to two decimal
places.
%
Now calculate the coefficient of variation...

Consider the following information on the expected return for
companies X and Y. Economy Probability X Y
Boom 0.24 38 % 17 %
Neutral 0.49 13 % 29 %
Poor 0.27 −28 % 4 %
a. Calculate the expected value and the standard deviation of
returns for companies X and Y. (Round intermediate calculations to
at least 4 decimal places. Round your final answers to 2 decimal
places.) b. Calculate the correlation coefficient if the covariance
between X and Y...

You have a dataset with variables Y; X; Z in it. You want to run
the instrumental variables regression of Y on X using Z as an
instrument. However, you are concerned that the instruments may be
weak. How would you check if the instruments are weak?

1.Explain why exponential functions of the form y = a ⋅
bx have the following requirements
The base b > 0
The base b≠1
2.Johanna solves 3x+2= 243 by first
substituting 9*3x for 3x+2 and then dividing
both sides by 9 to obtain 3x = 27 . Explain whether her
process so far is correct.
3. When using algebra to find inverse functions, sometimes we
have to restrict the domain. Explain when we have to restrict the
domain and why.

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 26 minutes ago

asked 39 minutes ago

asked 41 minutes ago

asked 43 minutes ago

asked 43 minutes ago

asked 48 minutes ago

asked 48 minutes ago

asked 53 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago