{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

# Handout7 - STOR 435 Handout 7 Sections 4.4-4.6 Example...

This preview shows pages 1–2. Sign up to view the full content.

STOR 435 Handout 7 Sections 4.4-4.6 Example 1 (Example 4a; Functions of a random variable) . X is a random variable with P ( X = - 1) = . 2, P ( X = 0) = . 5 and P ( X = 1) = . 3. What is E ( X 2 )? What is E ( X 2 )? Example 2 (Example 4b; Functions of a random variable) . A product that is sold seasonally yields a net profit of b dollars for each unit sold and a net loss of l dollars for each unit left unsold when the season ends. The number of units of the product that are ordered at a specific department store during any season is a random variable having probability mass function p ( i ) , i 0. If the store must stock this product in advance, determine the number of units the store should stock so as to maximize its expected profit. Example 3 (Variance) . 1. If X denotes the face that you observe when you throw a fair 6 faced dice, calculate var ( X ). 2. If Y denotes the outcome of an unfair 6-faced die where P ( Y = 1) = 1 / 3 , P ( Y = 2) = 1 / 9 , P ( Y = 3) = 1 / 18 P ( Y = 4) = 1 / 18 , P ( Y = 5) = 1 / 9 , P ( Y = 6) = 1 / 3 Calculate E ( Y ) , var ( Y ).

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

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### Page1 / 2

Handout7 - STOR 435 Handout 7 Sections 4.4-4.6 Example...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online