PS 2 - solutions

PS 2 - solutions - Solution key for homework 2(Econ 120B...

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Solution key for homework 2 (Econ 120B) 2.1. (a) Probability distribution function for Y Outcome (number of heads) Y = 0 Y = 1 Y = 2 probability 0.25 0.50 0.25 (b) Cumulative probability distribution function for Y Outcome (number of heads) Y < 0 0 Y < 1 1 Y < 2 Y 2 Probability 0 0.25 0.75 1.0 (c) Using Key Concept 2.3: and so that
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2.6. The table shows that (a) (b) (c) Calculate the conditional probabilities first: The conditional expectations are (d) Use the solution to part (b), (e) The probability that a randomly selected worker who is reported being unemployed is a college graduate is The probability that this worker is a non-college graduate is
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(f) Educational achievement and employment status are not independent because they do not satisfy that, for all values of x and y , For example, 2.9. Value of Y 14 22 30 40 65 Probability Distribution of X 1 0.02 0.05 0.10 0.03 0.01 0.21 5 0.17 0.15 0.05 0.02 0.01 0.40 Value of X 8 0.02 0.03 0.15 0.10 0.09 0.39 Probability distribution of Y 0.21 0.23 0.30 0.15 0.11 1.00 (a) The probability distribution is given in the table above. (b) Conditional Probability of Y | X = 8 is given in the table below Value of Y 14 22 30 40 65 0.02/0.39 0.03/0.39 0.15/0.39 0.10/0.39 0.09/0.39 (c)
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3.3. Denote each voter’s preference by if the voter prefers the incumbent and if the voter prefers the challenger. is a Bernoulli random variable with probability Pr and Pr From the solution to Exercise 3.2, has mean and variance (a) (b)
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PS 2 - solutions - Solution key for homework 2(Econ 120B...

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