Quiz 2

Name: ID:

1. The probability distribution table for X and Y is presented below.

Y\X 0 1 2
0 0.05 0.1 0.03
1 0.21 0.11 0.19
2 0.08 0.15 0.08

1-a) compute COV(X, Y)

1-b) compute COV(X 2 , Y)

2. Suppose (X, Y) have a joint distribution with the variances of X and Y finite and positive. Denote
the means and variances of X and Y by 𝜇1 , 𝜇2 𝑎𝑛𝑑 𝜎12 , 𝜎22 , respectively. We also let 𝜌 be the
correlation coefficient between X and Y. If E(𝑌|𝑋) is linear in X, then show that
𝜎
2-1) E(𝑌|𝑋) = 𝜇2 + 𝜌 𝜎2 (𝑋 − 𝜇1 )
1

2-2) E(𝑉(𝑌|𝑋)) = 𝜎22 (1 − 𝜌2 )

2-3) Verify that E(𝑉(𝑌|𝑋)) ≤ 𝐸(𝑉(𝑌)) and discuss its implications.

3. Let 𝑋 𝑎𝑛𝑑 𝑌 have the joint p.m.f. described as follows:

(X,Y) (1,1) (1,2) (1,3) (2,1) (2,2) (2,3)

p(x,y) 2/15 4/15 3/15 1/15 1/15 4/15

Using the distribution table above, we obtain

7 34 6 134 49
𝜇1 = 5 , 𝜇2 = 15 , 𝜎12 = 25 , 𝜎22 = 225, 𝑎𝑛𝑑 𝐸(𝑋𝑌) = 15

3-1) Compute the correlation coefficient (𝜌)

𝜎2
3-2) Compute 𝐸(𝑌|𝑋 = 1), 𝐸(𝑌|𝑋 = 2) 𝑎𝑛𝑑 the line 𝜇2 + 𝜌 (𝑋 − 𝜇1 ). Do the points
𝜎1
[𝑘, 𝐸(𝑌|𝑋 = 𝑘)] 𝑤ℎ𝑒𝑟𝑒 𝑘 = 1,2 lie on the line? If so, why? If not, why not? Explain.

Solutions)
𝑐𝑜𝑣(𝑋,𝑌) 7
3-1) 𝜌 = =
𝜎1 𝜎2 √804

3-2) No.

4. Let a random variable 𝑋 follows a uniform distribution over the interval [−1,1] and 𝑌 = 𝑋 2 .
Compute the covariance between X and Y. Are X and Y independent?

Sol) E(X) = E(Y) = 0 , E(XY) = E(X 3 ) = 0 → Cov(X, Y) = 0

But, X and Y are not independent.

5. A set of data whose histogram is bell shaped yields a mean and standard deviation of 50 and 4,
respectively. Approximately what proportion of observations

5-A) are between 46 and 54

5-B) are between 42 and 58

sol) a) about 68% ; b) about 95%;

6. Refer to question #5. Approximately what proportion of observations are

6-A) Are less than 46?

6-B) Are less than 58?

6-C) Are greater than 54?

Sol) a) From the empirical rule we know that approximately 68% of the observations fall between 46
and 54. Thus 16% are less than 46 (the other 16% are above 54). B) Approximately 95% of the
observations are between 42 and 58. Thus, only 2.5% are above 58 and all the rest, 97.5% are below
58. C) See (a) above; 16% are above 54.
7. Enumerate a sample of five members whose mean is 6 and whose standard deviation is 0.

Sol) 6, 6, 6, 6, 6

8. Find the probability that exactly four items of a random sample of size 5 from the distribution
𝑥+1
having p.d.f. 𝑓(𝑥) = 2
, −1 < 𝑥 < 1 are greater than zero.