Phạm Hoàng Nhi-BAFNIU19133

Huỳnh Bội Quân-BAFNIU19149

Vũ Lan Phương- BAFNIU19145

1.3.
a) Both are women
Choice 1: 8 women out of 14 total
Choice 2: 7 women out of 13 reamaining
8 7 4
× = ≈ 30.77%
14 13 13
b) Both are men
Choice 1: 6 men out of 14 total
Choice 2: 5 men out of 13 remaining
6 5 15
× = ≈ 16.48%
14 13 91
c) One is man and the other a woman
Choice 1: 8 men out of 14 total
Choice 2: 6 men out of 13 remaining
8 6 24
× = ≈ 26.37%
14 13 91
1.10
X: the number of match to be played in order to have a clear winner at the end
There are minimum of 2 matches and maximum of 3 matches
A: Event that first player wíns
B: Event that the second player wins
 (A,A); (B,B); (B;A;B); (A,B,A); (B,A,A); (A,B,B)
Case 1: 2 matches win in succession (A,A) and (B,B)
𝟏 𝟏 𝟏
P(A,A)=P(B,B)= 𝟐 × 𝟐 = 𝟒

Since both of them have the equivalent probability of winning and the remaining match is
independent
Case 2: 3 matches:
(B,A,B); (A,B,A); (B,A,A); (A,B,B)
1 1 1 1
× × =
2 2 2 8
E(X)=∑ 𝑥𝑃(𝑋 = 𝑥); 𝑥 = 2; 𝑥 = 3
1 1 1
𝑃[𝑋 = 2] = + =
4 4 2
1 1 1 1 1
𝑃[𝑋 = 3] = + + + =
8 8 8 8 2
The events are mutually exclusive => we can add them
1 1
E(X)= 2 × 2 + 3 × 2 = 2.5

 Expected Value : 2.5

b) The variance of the number of sets played:

𝜎 2 (𝑋) = 𝑉𝑎𝑟(𝑋) = 𝐸{[𝑋 − 𝐸(𝑋)]2 }

1 1
= × (2 − 2.5)2 + × (3 − 2.5)2 = 0.25
2 2

1.12
A)
The lawyer takes the fixed fee
 No randomness => the mean is just $5,000 and the standard deviation = 0
B)
If the lawyer loses: 𝑋 = $0, 𝑃(𝑋 = 𝑥) = 7 => 𝑥 × 𝑃 = 0
3
If the lawyer wins: 𝑋 = $25,000, 𝑃(𝑋 = 𝑥) = 10 => 𝑥 × 𝑃 = $7,500

The mean: E[X]= 0+ $7500= $7500

The variance:
3 7
Var(X)=10 [(25000 − 7500)2 ] + 10 (−7500)2 = 131,250,000

 Standard deviation=11,456.43924
1.18
Let X1, X2, X3 be the amount of the stock goes up ( either 1 or -1) in the first 3 periods. According to
the given information: X1, X2, X3, X are independent. We have:

• Y = E(X1) + X2 + X3
1 1
• E(X1) = E(X2) = E(X3) =E(X) = 2 × 1 + 2 × (−1) = 0
• E(Y) = E(X1) + E(X2) + E(X3) = 0
The correlation between X and Y is
Cov(X,Y)
P(X,Y)=
√Var(X).Var(Y)

E(XY)−E(X).E(Y)
 P(X,Y)=
√E(X2 ).E(Y)2

1 1
• E(X 2 ) = × 12 + × (−1)2 = 1
2 2
• E(Y 2 ) = E(X12 ) + E(X22 ) + E(X32 ) = 1 + 1 + 1 = 3

Since X is the amount the stock goes up ( either 1 or -1 ) in the first period, we have: X= X1.
Futhermore, X1, X2, X3 are independent
 Corr(X,X2) = Corr(X,X3) = 0
thus, the correlation between X and Y is:
E(X2 ) 1 √3
P(X,Y)= = √3 = 3
2 2
√E(X ).E(Y)