Solution+PS+1

# Solution+PS+1 - Solutions provided by Pedro Castro(ECON 140...

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Solutions provided by Pedro Castro (ECON 140 GSI). QUESTION 1 a)X = 11 + x i °, where 11 is the value of your ±rst two cards (a 5 and a 6) and ²x i °is the value of your last card. We have: Probability (x i = 1) = 4 49 (if you get an A you choose that it is a 1) Probability (x i = 2) = 4 49 Probability (x i = 3) = 4 49 Probability (x i = 4) = 4 49 Probability (x i = 5) = 3 49 Probability (x i = 6) = 3 49 Probability (x i = 7) = 4 49 Probability (x i = 8) = 4 49 Probability (x i = 9) = 4 49 Probability (x i = 10) = 15 49 See graph in excel ±le. b) E ( X ) = = E (11 + x i ) = 11 + E ( x i ) = 11 + 4 49 ° (1) + 4 49 ° (2) + 4 49 ° (3) + 4 49 ° (4) + + 3 49 ° (5) + 3 49 ° (6) + 4 49 ° (7) + 4 49 ° (8) + 4 49 ° (9) + 15 49 ° (10) = 17 : 51 c) V AR ( X ) = V AR (11 + x i ) = = V AR ( x i ) = E [ x i ± E ( x i )] 2 = 4 49 ° (1 ± 6 : 51) 2 + 4 49 ° (2 ± 6 : 51) 2 + 4 49 ° (3 ± 6 : 51) 2 + 4 49 ° (4 ± 6 : 51) 2 + + 3 49 ° (5 ± 6 : 51) 2 + + 3 49 ° (6 ± 6 : 51) 2 + 4 49 ° (7 ± 6 : 51) 2 + + 4 49 ° (8 ± 6 : 51) 2 + 4 49 ° (9 ± 6 : 51) 2 + 4 49 ° (10 ± 6 : 51) 2 = 10 : 25 e)See excel ±le. 1

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QUESTION 2 2.1) ____ RPP = 138.17 ______ RENT =130.39 ___ NO =2.44 Then, ______ RENT / ___ NO = 130.39 6 = 138.17= ____ RPP 2.2) E ( Y X ) = 1 2 ° ( ± 8 ± 4 ) + 1 2 ° ( 60 2 ) = 1 + 15 = 16 E ( Y ) E ( X ) = ° 1 2 ° ( ± 8) + 1 2 ° (60) 1 2 ° (2) + 1 2 ° ( ± 4) ± = 26 ± 1 = ± 26
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