Chapters 2 and 3 Answers - Chapter 2 14. The central limit...

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Unformatted text preview: Chapter 2 14. The central limit theorem suggests that when the sample size ( n ) is large, the distribution of the sample average ( ) Y is approximately 2 , Y Y N with 2 2 . Y n Y = Given 100, Y = 2 43 0, Y = . (a) 100, n = 2 2 43 100 0 43, Y n Y = = = . and 100 101 100 Pr ( 101) Pr (1 525) 0 9364 0 43 0 43 Y Y-- = . = . . . . (b) 165, n = 2 2 43 165 0 2606, Y n Y = = = . and 100 98 100 Pr ( 98) 1 Pr ( 98) 1 Pr 0 2606 0 2606 1 ( 3 9178) (3 9178) 1 000 (rounded to four decimal places) Y Y Y -- =- = - . . - - . = . = . . (c) 64, n = 2 2 43 64 64 0 6719, Y Y = = = . and 101 100 100 103 100 Pr (101 103) Pr 0 6719 0 6719 0 6719 (3 6599) (1 2200) 0 9999 0 8888 0 1111 Y Y --- = . . . .- . = .- . = . . 22. The mean and variance of R are given by 2 2 2 2 0.08 (1 ) 0.05 0.07 (1 ) 0.042 2 (1 ) [0.07 0.04 0.25] w w w w w w = > +- = +- +- 7q...
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This note was uploaded on 05/03/2010 for the course ECON 303 taught by Professor Grant during the Spring '10 term at Lewis and Clark Community College.

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Chapters 2 and 3 Answers - Chapter 2 14. The central limit...

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