Review_Sheet_m2 - Economics 390 Midterm Examination 2...

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Economics 390 Midterm Examination 2 Review Sheet This document is intended to serve as a guide for your preparation for the second midterm. It lists the topic areas that I will draw from, along with a very rough (non-binding) estimate for the weight I will give to each broad area in the exam. Of course, not every topic listed here can fit on the exam. Random Variables – Continuous (15%) o PDF and Distribution Function o Expected Value, Variance and Standard Deviation o Linear Transformations Standardization o Uniform Distribution o Normal Distribution o Normal Approximation of the Binomial Distribution Two random variables (Discrete and Continuous) (30%) o Joint PDFs o Conditional PDFs o Marginal Probabilities o Covariance o Correlation o Expectation of sums/differences Portfolio allocations Sums/differences of normally distributed RVs. o Statistical Independence Sampling and Sampling Distributions (30%) o X : Sample mean Variance of Sample Mean Finite Sample Correction Factor
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