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    7 views36 pages

    Combinepdf 2 PDF

    Uploaded by

    veechow

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
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    of 36
    |ERAMIPLESIBISE|A random number generator was designed such that it has @ 10% chance o producing an integer value of Or 1.iso, 0 and 1 were equally likely to appear, Otherwise, it generated a number between 0 and 1 with the probability density function, fiQ)= 2x, 0 9250 = ge vorl x)= elor buivtl + vor [eek] sorte [L600 = wast vorly)> Gags = sat =Uwaoyl + vor lab] Eled>tLetaryd]- thay] « 35028) | +s (B) (BRAMBLES n insurance company has two types of insureds: = Type A: high-risk insureds with a mean loss of 3000 and a standard deviation of 10 = Type B: low-risk insureds with a mean loss of 1000 and a standard deviation ofS. ‘You are given that 40% of the insureds are of high risk Determine the variance amount of loss that the insureds incur, Solution ELvarGxrt] = vorulndecca)+ vor (xls) 08) vor Lecernil = Letate)=etsie\] "UN Pe) ETxta] = sons Wol04) #2500) > (2120 100" (0.4).0.0 vor EXIAT = to = 100, =% = 40 COO ELuls }~ tong Var (iis) =5*= 25 Wor (n= 56 7960 COO Bruno = Gio 086 PriB\= 0.6 1 conc neanus ° itis quicker to apply tnelBERRGUNSHEREIE ro calculate Var TI] because there are only two possible values for EXT), Le. 3000 anes 1000, Review the Bernoulli shortcut in Section 2.8.1 f needed An alternative way to computer VarlE(X|TI is to use the frst principles: Var[X] = B[X*] — (ELX)?. Therefore, Varle(xirl] = E(eLxI7"] — (ELELXITI)? where E[E[XIT]] = E[X14] + Pe(A) + ELX1B] + Pr(B) E(ELXITP] = B(XIAP = Pr(Aa) + BLXIBP = Pr(B) (000° (0.4) + 1000"(0.6) 200000 Asa resutt, Var[E[XIT]] = 4200000 ~ 1800? = 960 000 |ASSIGNMIENT)3:2:2 WEIGHTED AVERAGE , DOUBLE EXPECTATION, AND THE LAW OF TOTAL VARIANCE. "You are given the following joint probability function for X and ¥: P{0.0}-05 Pr{Q,1)=0.2 Pr(,0)=0.2.Pr(2,1}=0.1 Compute E1Y|X=1] aly 8 PRN = 0.9 01-03, tyleid= 04+ 4 @ Or Uleobeedl= ae =e \ a3 Of Be(Yel Lae) Bk > as 3.3 INDEPENDENT RANDOM VARIABLES 3.3.1: INDEPENDENT RANDOM VARIABLES Random variables are said to be independent ifthe joint cumulative distribution function is the product of their respective cumulative distribution functions forall values. An equivalent test of Independence isif the joint probability function is the product of their respective probability functions forall values. For the cause of two random variables, ifX and are independent, then Ey) =hC)*O) B31) Or equivalentty, fey = fe) * fy) (3.3.2) for all values of x andy EXAXMPLE 3.3.1: XandY have the following joint probability density function: f(x) Determine ifX and are independent. fude [FF ast geet Rode bE =d = Seg Gay) O

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