ECON 2P91 Assignment 1.docx - ECON 2P91: Assignment #1 1....

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ECON 2P91: Assignment #11.Think of the situation of rolling two dice and let M denote the sum of the number ofdots on the two dice. (So M is a number between 2 and 12.)a.In a table, list all the possible outcomes for the random variable M together withits probability distribution and cumulative probability distribution. Sketch bothdistributions
b.Calculate the expected value and the standard deviation for Mc.Looking at the sketch of the probability distribution, you notice that it resembles anormal distribution. Should you be able to use the standard normal distributionto calculate probabilities of events? Why or why not?
2.By looking at the results of activity #1 above, what is the probability (in percentage) ofthe following outcomes?a.Pr(M = 7)b.Pr(M = 2 or M = 10)
c.Pr(M = 4 or M ≠ 4)
d.Pr(M < 8)
e.Pr(M = 6 or M > 10)
3.
4.By looking at a large Statistics Canada data set (accessed at )with over 60,000 observations for the year 2018, you find that the average number ofyears of education is approximately 15.6. However, a surprising large number ofindividuals (approximately 800) have quite a low value for this variable, namely 6 yearsor less. You decide to drop these observations, since none of your relatives or friendshave that few years of education. In addition, you are concerned that if these

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Term
Fall
Professor
LewisStevenson
Tags
Normal Distribution, Standard Deviation, probability density function, Kurtosis

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