I. Suppose you are drawing cards out of a 30 card deck. The following table reports

the value of each type of card and the number of that type in the deck.

Value Number

1 6

2 7

3 6

4 3

5 8

A.) Are the card values discrete or continuous?

B.) What is the expected value of a single draw?

C.) Is the expected value you found a value you could actually draw? Does it have to be?

D.) What is the population variance?

E.) What is the population standard deviation?

F.) Draw the probability distribution of the cards.

II. You are attempting to determine whether the price of Dell computers is related to

the price of Apple computers. Over the course of a year, you observe the following prices:

(Assume this is just a sample of prices rather than the entire population)

Dell Apple

$1000 $2000

$1200 $2100

$1300 $2400

$1250 $2500

$1100 $2050

A.) What is the mean price for each type of computer?

B.) What is the covariance between the price of Dell and the price of Apple?

C.) What is the variance in the price of Dell

D.) What is the variance in the price of Apple

E.) What is the correlation between Dell and Apple prices?

F.) You find out that the website from which you recorded the price of Apple computers

overstated there price. How will your covariance change if Old Apple = 0.7* New Apple? (Use

covariance rules to answer this question rather than calculating the value)

the value of each type of card and the number of that type in the deck.

Value Number

1 6

2 7

3 6

4 3

5 8

A.) Are the card values discrete or continuous?

B.) What is the expected value of a single draw?

C.) Is the expected value you found a value you could actually draw? Does it have to be?

D.) What is the population variance?

E.) What is the population standard deviation?

F.) Draw the probability distribution of the cards.

II. You are attempting to determine whether the price of Dell computers is related to

the price of Apple computers. Over the course of a year, you observe the following prices:

(Assume this is just a sample of prices rather than the entire population)

Dell Apple

$1000 $2000

$1200 $2100

$1300 $2400

$1250 $2500

$1100 $2050

A.) What is the mean price for each type of computer?

B.) What is the covariance between the price of Dell and the price of Apple?

C.) What is the variance in the price of Dell

D.) What is the variance in the price of Apple

E.) What is the correlation between Dell and Apple prices?

F.) You find out that the website from which you recorded the price of Apple computers

overstated there price. How will your covariance change if Old Apple = 0.7* New Apple? (Use

covariance rules to answer this question rather than calculating the value)

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