Find the sample mean and variance

Assignment Help Microeconomics
Reference no: EM13144149

Question 1

Suppose X ~ N(30, 144), and W~N(40,225).

a. If X and W are uncorrelated, find the mean and variance of X + 2W.

b. Find the probability that X + 2W > 120.

Henceforth, suppose that X and W have a correlation coefficient ρ=-.25. 

c. What is the covariance of X and W?

d. Find the probability that X + 2W >120.

e. Find the probability that < X + 2W <120

Question 2

Our bank from Question 2 has decided to look more deeply into the matter of customer wait times.  In addition to information on the waiting times, the bank has compiled information about the credit scores of the applicants.  That is, the bank has 20 observation of the following 2 variables:

Observation

1

2

3

4

5

6

7

8

9

10

Wait Time

5

7

22

4

12

9

9

14

3

6

Credit Score

740

730

550

700

650

660

630

600

760

730

 

Observation

11

12

13

14

15

16

17

18

19

20

Wait Time

5

8

10

17

12

10

9

4

3

13

Credit Score

700

620

600

580

650

670

670

790

750

610

a. Find the sample mean and variance of the Credit Score variable (you can call this variable Y if you like).

b. Find the sample covariance and sample correlation coefficient of Wait Times and Credit Scores.

c. Give a short interpretation of the correlation coefficient for this example.

d. What story can you tell that would explain the correlation coefficient the bank observes.

Reference no: EM13144149

What does utility function say about her mrs of coke

Show this utility maximiz- ing combination combination of Pepsi and Coke on the graph. how would her consumption and utility maximizing bundle of Coke and Pep

Drywall and its principal inputs, gypsum and paper

Drywall and its principal inputs, gypsum and paper, are costly to transport. Some drywall manufacturers(for example, National Gypsum) list plant locations online. Do plant loc

Complete a time-sensitive project

Rigorously analyze the issues you have identified. Base your arguments on data in the case. Demonstrate your critical thinking ability, creativity, and insight, as well as a

Calculate the profit-maximizing price

A pharmaceutical firm has a monopoly on a new class of vasodilator. The market demand is given by P=240-0.01*Q, and thus MR=240-0.02*Q. The monopolist's marginal cost is const

What is the equilibrium output and profit

These multiple choice questions related to Economics. The first question is about economic profits and the second question is about calculating equilibrium output and profit

How much higher is quality-adjusted price of checkups

How much of the higher price for checkups using the new method (as compared to checkups in the previous year) re- flects a true price increase of checkups and how much repre

Monetary policy and fiscal policy

Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4

Determine what effect a price increase would hence on total

RKT corporation is a publisher of Economics books. The demand function for its books is given by the equation Qx = 12000 - 5000 Px + 5y + 500 Pc where Px is the price charged

Reviews

Write a Review

 
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd