Unformatted text preview: first ball drawn was black given that the second ball drawn was red. (25) 2. Suppose the random variables X, Y, Z have the following joint p.d.f.: Determine the univariate marginal p.d.f. for each of X, Y, and Z. (25) 3. Consider two random variables X and Y, where X = price and Y = quantity. Researcher A predicts quantity given price with E*(YX), making prediction error U = Y  E*(YX). Researcher B predicts price given quantity with E*(XY), making prediction error V = X  E*(XY). Find Cov(U, V) and express it in terms of the correlation D XY between price and quantity. (13) 4. (a) Exercise 3.4.11(b) (12) (b) Using Exercise 3.4.11(c), do Exercise 3.4.11(d)....
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This note was uploaded on 12/12/2010 for the course ECON ECON 220A taught by Professor Dalej.poirier during the Fall '10 term at UC Irvine.
 Fall '10
 DaleJ.POIRIER
 Econometrics

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