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Unformatted text preview: X tends to be bigger than Y . 3.6. Suppose X = X 1 with probability p and X = X 2 with probability 1 & p; where p 2 (0 ; 1) ; X 1 and X 2 are random variables with CDF²s F 1 ( x ) and F 2 ( x ) respectively. Find the CDF of X: 1 3.7. An investment &rm o/ers its customers municipal bonds that mature after varying numbers of years. Given that the cumulative distribution of T; the number of years to maturity for a randomly selected bond is F ( t ) = 8 > > > > > > < > > > > > > : t < 1 ; 1 4 1 & t < 3 ; 1 2 3 & t < 5 ; 3 4 5 & t < 7 ; 1 t ± 7 : Find (1) P ( T = 5); (2) P ( T > 3); and (3) P (1 : 4 < T < 6) : Give your reasoning. 2...
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 Fall '07
 HONG
 Economics, Econometrics, Cumulative distribution function, CDF, mutually exclusive events, cdf FY, PROF Y. HONG

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