hw2_answer_su05

hw2_answer_su05 - Economics 120A Professor Yongil Jeon...

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Economics 120A Name: _________________________ Professor Yongil Jeon Summer 2005 Student ID#: _________________________ Answer to Homework #2 (Final Exam, Summer 2004) 1. (10 points) Given that z is a standard normal random variable, compute the following probabilities (a) (3 points) P(-1.98 z 0.49) (b) (3 points) P(0.52 z 1.22) (c) (4 points) P(-1.75 z -1.04) . di norm(1.98) .9761 . di norm(0.49) .6879 . di norm(0.52) .6985 . di norm(1.22) .8888 . di norm(1.75) .9599 . di norm(1.04) .8508 (Answer) (a) P(-1.98 z 0.49) = F(0.49)-F(-1.98)= F(0.49)-[1-F(1.98)] = 0.6879 – (1-0.9761) = 0.6640 (b) P(0.52 z 1.22) = F(1.22)-F(0.52)=0.8888-0.6985=0.1903 (c) P(-1.75 z -1.04)=F(-1.04)-F(-1.75)= [1-F(1.04)]-[1-F(1.75)]=(1-0.8508)-(1-0.9599)= 0 .1091
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