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The following table gives the joint PDF of random variables X and Y, where X = the first-year rate of return (%) expected from investment A, and Y= the first-year rate of return (%) expected from investment B.
Rates of Return on Two investmentsX(%)Y(%) -10 0 20 3020 0.27 0.08 0.16 0.0050 0.00 0.04 0.10 0.35
a. Find the marginal distributions of Y and X.
b. Calculate the expected rate of return from investment B
c. Find the conditional distribution of Y, given X= 20
D. Are X and Y independent random variables? How do you know?
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