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Unformatted text preview: 5, µY = 69, σY = 2, ρ = 0.44. What is
the probability that the wife is taller than her husband? Exercise 2
Every month, the government of Neverland spends X million dollars purchasing guns and
Y million dollars purchasing butter. Assume X and Y jointly follow a bivariate normal
distribution with parameters
µX = 370, σX = 50, µY = 270, σY = 40, ρ = −0.80 (a) Find the probability that more than 250 million was spent on butter during a particular
month. That is, ﬁnd P (Y > 250).
(b) Suppose the government of Neverland spent 450 million dollars on guns during a particular month. Find the probability that more than 250 million was spent on butter
during the same month. That is, ﬁn...
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