Question

Suppose E[X1] = 5 and Var[X1] = 6. Suppose E[X2] = 8 and Var[X2] = 7....

Suppose E[X1] = 5 and Var[X1] = 6. Suppose E[X2] = 8 and Var[X2] = 7. Suppose also that the covariance between X1 and X2 is 2.5.

a) calculate the expected value and variance of X2 − X1.

b) calculate the correlation of U = X2 − X1 and V = X2 − 2X1.

Math   Statistics-And-Probability   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

For further queries, please comment below.

Thank you.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Suppose that X1,X2 and X3 are independent random variables with common mean E(Xi) = μ and...
Suppose that X1,X2 and X3 are independent random variables with common mean E(Xi) = μ and variance Var(Xi) = σ2. Let V= X2−X3 and W = X1− 2X2 + X3. (a) Find E(V) and E(W). (b) Find Var(V) and Var(W). (c) Find Cov(V,W). (d) Find the correlation coefficient ρ(V,W). Are V and W independent?
8) X1X1 and X2X2 are two random variables that are jointly distributed such that E(X1)=8E(X1)=8, E(X2)=12E(X2)=12,...
8) X1X1 and X2X2 are two random variables that are jointly distributed such that E(X1)=8E(X1)=8, E(X2)=12E(X2)=12, Var(X1)=2Var(X1)=2, Var(X2)=3Var(X2)=3 and Cov(X1,X2)=−1Cov(X1,X2)=−1. Let Z=5X1−4X2−5Z=5X1−4X2−5. Compute E(Z)E(Z). Compute Var(Z)Var(Z). Compute Corr(X1,X2)Corr(X1,X2). Show all your working.
Solve the following LP problem graphically using level curves. MAX: 7 X1 + 4 X2 Subject...
Solve the following LP problem graphically using level curves. MAX: 7 X1 + 4 X2 Subject to: 2X1 + X2 ≤ 16 X1 + X2 ≤ 10 2X1 + 5 X2 ≤ 40 X1, X2 ≥ 0 a. X1 = 4 b. X1 = 6 c. X1 = 8 d. X1 = 10
5. Let X1, X2, . . . be independent random variables all with mean E(Xi) =...
5. Let X1, X2, . . . be independent random variables all with mean E(Xi) = 7 and variance Var(Xi) = 9. Set Yn = X1 + X2 + · · · + Xn n (n = 1, 2, 3, . . .) (a) Find E(Y2) and E(Y5). (b) Find Cov(Y2, Y5). (c) Find E (Y2 | X1). (d) How should your answers from parts (a)–(c) be modified if the numbers “2”, “5”, “7” and “9” are replaced by m,...
Suppose an individual utility function is (i) U = min (X1, X2) and (ii) U =...
Suppose an individual utility function is (i) U = min (X1, X2) and (ii) U = 2X1 + X2. Show the indifference curves in both cases. Calculate and explain cross elasticity of X1 and X2 in (i) and (ii).
The random variables X1 and X2 both follow normal distributions. The mean of X1 is E(X1)=5,...
The random variables X1 and X2 both follow normal distributions. The mean of X1 is E(X1)=5, and its variance is V(X1)=2 The mean of X2 is E(X2)=9, and its variance is V(X2)=3. If Y is a random variable such that Y = 3X1+5X2, what is P(Y<70)? A student takes 4 measurements and finds that the mean is 64 and the sample variance is 81. What is the sample standard deviation For a random variable X, which statement is most likely...
max Z = 5x1+3x2+x3 s.t : 2x1+x2+x3 < 6 x1+2x2+x3 < 7 x1, x2, x3 >...
max Z = 5x1+3x2+x3 s.t : 2x1+x2+x3 < 6 x1+2x2+x3 < 7 x1, x2, x3 > 0 Solve the problem. What is the optimal value of the objective function (OF)? Decision variables? Solve the problem. What is the optimal value of the objective function (OF)? Decision variables? (20 points)
1. Al Einstein has a utility function that we can describe by u(x1, x2) = x21...
1. Al Einstein has a utility function that we can describe by u(x1, x2) = x21 + 2x1x2 + x22 . Al’s wife, El Einstein, has a utility function v(x1, x2) = x2 + x1. (a) Calculate Al’s marginal rate of substitution between x1 and x2. (b) What is El’s marginal rate of substitution between x1 and x2? (c) Do Al’s and El’s utility functions u(x1, x2) and v(x1, x2) represent the same preferences? (d) Is El’s utility function a...
1. Suppose the variable x2 has been omitted from the following regression equation, y = β0...
1. Suppose the variable x2 has been omitted from the following regression equation, y = β0 + β1x1 +β2x2 + u. b1 is the estimator obtained when x2 is omitted from the equation. The bias in b1 is positive if A. β2<0 and x1 and x2 are positive correlated B. β2=0 and x1 and x2 are negative correlated C. β2>0 and x1 and x2 are negative correlated D. β2>0 and x1 and x2 are positive correlated 2. Suppose the true...
Let x1, x2 x3 ....be a sequence of independent and identically distributed random variables, each having...
Let x1, x2 x3 ....be a sequence of independent and identically distributed random variables, each having finite mean E[xi] and variance Var（xi）. a）calculate the var （x1+x2） b）calculate the var（E[xi]） c） if n-> infinite, what is Var（E[xi]）？
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT