Question

2. The following table gives the joint PDF of random variables X and Y, where X...

2. The following table gives the joint PDF of random variables X and Y, where X is the first-year rate of return (%) from investment A, and Y is the first-year rate of return (%) from investment B.

   X (%)

   Y (%)

   -10

0

20

30

   0

0.27

   0.08

0.16

   0.00

45

0.00

   0.04

0.10

   0.35

A. Calculate the expected rate of return from investment A.

B. What is the expected rate of return on investment B if X = 20?

C. Calculate the variances, covariance, and correlation coefficient of X and Y.

D. Are X and Y independent random variables? How do you know? Explain.

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

Homework Answers

Answer #1

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
Consider continuous random variables X and Y whose joint pdf is f(x, y) = 1 with...
Consider continuous random variables X and Y whose joint pdf is f(x, y) = 1 with 0 < y < 1 − |x|. Show that Cov(X, Y ) = 0 even though X and Y are dependent. Note: For this problem, you only need to show that the covariance is zero. You need not show that X and Y are dependent.
19. Let X and Y be continuous random variables with joint pdf: f(x, y) = x−y...
19. Let X and Y be continuous random variables with joint pdf: f(x, y) = x−y for 0 ≤ y ≤ 1 and 1 ≤ x ≤ 2. If U = XY and V = X/Y , calculate the joint pdf of U and V , fUV (u, v).
Suppose X and Y are continuous random variables with joint pdf f(x,y) = 2(x+y) if 0...
Suppose X and Y are continuous random variables with joint pdf f(x,y) = 2(x+y) if 0 < x < < y < 1 and 0 otherwise. Find the marginal pdf of T if S=X and T = XY. Use the joint pdf of S = X and T = XY.
Consider continuous random variables X and Y whose joint pdf is f(x, y) = 1 with...
Consider continuous random variables X and Y whose joint pdf is f(x, y) = 1 with 0 < y <1 – abs(x). Show that Cov(X, Y ) = 0 even though X and Y are dependent. Note: For this problem, you only need to show that the covariance is zero. You need not show that X and Y are dependent.
Let X and Y be random variables with joint pdf f(x, y) = 2 + x...
Let X and Y be random variables with joint pdf f(x, y) = 2 + x − y, for 0 <= x <= 1, 1 <= y <= 2. (a) Find the probability that min(X, Y ) <= 1/2. (b) Find the probability that X + √ Y >= 4/3.
2. Random variables X and Y have a joint PDF fX,Y (x, y) = 2 for...
2. Random variables X and Y have a joint PDF fX,Y (x, y) = 2 for 0 ≤ y ≤ x ≤ 1. Determine (a) E[X] and Var[X]. (b) E[Y ] and Var[Y ]. (c) Cov(X, Y ). (d) E[X + Y ]. (e) Var[X + Y ].
Let X & Y be two continuous random variables with joint pdf: fXY(X,Y) = { 2...
Let X & Y be two continuous random variables with joint pdf: fXY(X,Y) = { 2 x+y =< 1, x >0, y>0 { 0 otherwise find Cov(X,Y) and ρX,Y
Suppose X and Y are continuous random variables with joint pdf f(x,y) = x + y,...
Suppose X and Y are continuous random variables with joint pdf f(x,y) = x + y, 0 < x< 1, 0 < y< 1. Let W = max(X,Y). Find EW.
1. Let (X,Y ) be a pair of random variables with joint pdf given by f(x,y)...
1. Let (X,Y ) be a pair of random variables with joint pdf given by f(x,y) = 1(0 < x < 1,0 < y < 1). (a) Find P(X + Y ≤ 1). (b) Find P(|X −Y|≤ 1/2). (c) Find the joint cdf F(x,y) of (X,Y ) for all (x,y) ∈R×R. (d) Find the marginal pdf fX of X. (e) Find the marginal pdf fY of Y . (f) Find the conditional pdf f(x|y) of X|Y = y for 0...
Let X and Y be random variables with the joint pdf fX,Y(x,y) = 6x, 0 ≤...
Let X and Y be random variables with the joint pdf fX,Y(x,y) = 6x, 0 ≤ y ≤ 1−x, 0 ≤ x ≤1. 1. Are X and Y independent? Explain with a picture. 2. Find the marginal pdf fX(x). 3. Find P( Y < 1/8 | X = 1/2 )
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT