Solution+PS+1

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

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QUESTION 1 a)X = 11 + x i and ²x i 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
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This note was uploaded on 10/21/2008 for the course ECON 140 taught by Professor Duncan during the Spring '08 term at Berkeley.

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

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