ans to prob1

# ans to prob1 - Suggested Answer to ECON 346 Problem Set 1...

This preview shows pages 1–3. Sign up to view the full content.

1 Suggested Answer to ECON 346 Problem Set 1 #1 (a) - (b) P ( X i ) Probability; CD ( X i ) Cumulative distribution Mean: = = = 8 1 ) ( ] [ i i i i X P X X E μ Median: the middle point of the data, that is, the point at the cumulative distribution = 0.5 Variance: = - = - = 8 1 2 2 2 ) ( ) ( ] ) [( i i i i X P X X E σ Standard deviation: 01836 . 0 000337 . 0 2 = = = Table 1 X i P ( X i ) CD ( X i ) X i · P ( X i ) ( Xi - μ ) 2 ( Xi - μ ) 2 · P ( X i ) 0.05 0.04 0.04 0.002 0.00142884 0.00005715 0.06 0.06 0.10 0.0036 0.00077284 0.00004637 0.07 0.16 0.26 0.0112 0.00031684 0.00005069 0.08 0.22 0.48 0.0176 0.000061 0.00001338 0.09 0.14 0.62 0.0126 0.000005 0.00000068 0.10 0.18 0.80 0.018 0.00014884 0.00002679 0.11 0.12 0.92 0.0132 0.00049284 0.00005914 0.12 0.08 1.00 0.0096 0.00103684 0.00008295 Summation 1.00 0.0878 ( Mean ) 0.00426272 0.000337 ( Variance ) (c) Table 2 X i X i + 100 X i · 100 P ( X i ) X i · P ( X i ) [ X i + 100 ] · P ( X i ) [ X i · 100 ] · P ( X i ) 0.05 100.05 5 0.04 0.002 4.002 0.2 0.06 100.06 6 0.06 0.0036 6.0036 0.36 0.07 100.07 7 0.16 0.0112 16.0112 1.12 0.08 100.08 8 0.22 0.0176 22.0176 1.76 0.09 100.09 9 0.14 0.0126 14.0126 1.26 0.1 100.1 10 0.18 0.018 18.018 1.8 0.11 100.11 11 0.12 0.0132 12.0132 1.32 0.12 100.12 12 0.08 0.0096 8.0096 0.96 Summation 1.00 0.0878 ( μ Xi ) 100.0878 ( μ Xi+100 ) 8.78 ( μ Xi*100 ) According to Table 2 above, we can find: 0878 . 0 ) ( = = Xi i X E 0878 . 100 ) 100 ( 100 = = + + Xi i X E 78 . 8 ) 100 * ( 100 * = = Xi i X E

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
2 So, we can prove the following relationship: ) ( 100 0878 . 0 100 0878 . 100 ) 100 ( i i X E X E + = + = = + ) ( * 100 0878 . 0 * 100 78 . 8 ) 100 * ( i i X E X E = = = (d) Table 3 X i P ( X i ) X i + 100 X i · 100 ( Xi+100 - μ Xi+100 ) 2 [( Xi+100 - μ Xi+100 ) 2 ] · P ( X i ) ( Xi · 100 - μ Xi
This is the end of the preview. Sign up to access the rest of the document.

## ans to prob1 - Suggested Answer to ECON 346 Problem Set 1...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online