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Unformatted text preview: Final Practice Problems  Econometrics 120A 1. The following is a fictional joint probability distribution for level of household income and the type of computer a household owns. Computer type is entered in the left most column, and level of income on the top most row. Computer Type/Income 15,000 40,000 90,000 No Computer 0.2 0.1 PC 0.1 0.2 0.1 Mac 0.1 0.2 (a) What is the probability that household income is 15,000? What is the probability household income is 40,000? What is the probability that household income is 90,000? (b) What is the probability that household income is higher than 30,000? (c) Conditional on income being 90,000, what is the probability that a household owns a PC? (d) Conditional on income being 90,000, what is the probability that a household owns a Mac? (e) Are the level of income and the type of computer a household owns independent from each other? 2. Suppose X i has a Normal distribution with unknown mean μ and variance σ 2 . You sample 25 observations and find...
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 Spring '10
 Elliot
 Normal Distribution, Probability, Normal approximation, household income

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