### 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.

#### 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

### Write a Review 