PSet1 - Problem Set 1 Introduction to Econometrics - Fall...

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Problem Set 1 Introduction to Econometrics - Fall 2006 Due Date: Thursday, September 21st, BEFORE CLASS. Each student is responsible for handing one handwritten solution. If working in groups, indicate the members of the group (to facilitate grading). PLEASE SHOW YOUR WORK . 1. The random variable X is distributed normally with N ¡ µ X 2 X ¢ (a) What is the Pr( X µ X ) ? What is the Pr( X µ X +1 . 96 σ X ) ? (b) Let Y = X µ X σ X .S h o wt h a t Y is distributed normally with N (0 , 1) ;th a ti s E ( Y )=0 and Var ( Y )=1 . (c) Show that E ¡ Y 2 ¢ =1 2. Let the random variable X be the temperature in Madison, WI at 12:00pm on September 21th. You know that X is distributed normally with N (72 , 100) . (a) What is the probability the temperature is lower than 46 F ? What is the probability the temperature is higher than 90 F ? What is the probability the temperature is in between 65 F and 80 F ?H ighe rthan 80 F ? (b) What is the temperature below which we are not going to fall in 99% of cases?
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This note was uploaded on 07/28/2010 for the course ECON 410 taught by Professor Staff during the Fall '08 term at University of Wisconsin Colleges Online.

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PSet1 - Problem Set 1 Introduction to Econometrics - Fall...

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