stock_watson_ch2_3_fall11

# stock_watson_ch2_3_fall11 - Stock and Watson Chapter 2.3...

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Stock and Watson Chapter 2.3- Two Random Variables Joint distribution The joint probability distribution of two discrete random variables, say X and Y , is the probability that the random variables simultaneously take on certain values, say x and y . The probabilities of all possible ( x , y ) combinations sum to 1. The joint probability distribution can be written as the function P( X = x , Y = y ). Joint distribution of X and Y <A in Calculus in HS ( X =0) A in Calculus in HS ( X =1) Total <A in Calculus in College ( Y =0) 0.3 0.2 0.5 A in Calculus in College ( Y =1) 0.1 0.4 0.5 Total 0.4 0.6 1 Conditional distribution The distribution of a random variable Y conditional on another random variable X taking on a specific value is called the conditional distribution of Y given X . The conditional probability that Y takes on the value Y when X takes on the value x is written Pr( Y = y | X = x ). In general, the conditional distribution of

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## This note was uploaded on 02/22/2012 for the course PAM 2100 taught by Professor Abdus,s. during the Fall '08 term at Cornell.

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stock_watson_ch2_3_fall11 - Stock and Watson Chapter 2.3...

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