Week 5:
Bivariate Distribution: the distribution of a pair of random
variables
P(X<=170 int Y<=50) is an example of the probability
that can be derived from a bivariate distribution f(x,y).
• When (X,Y) are independent RVs, their bivariate
distribution has a simple form f(x,y)=f(x)f(y)
Loading the csv file into R
1. car=read.csv(file.choose(),header=T) to load the file
from your computer
2. car$probabilities=car$frequencies/100 to convert
frequency to probability
3. To calculate P(X=1),
sum(car$probabilities[car$x==1])
4. To calculate P(Y>=2),
sum(car$probabilities[car$Y>=2])
Covariance of X and Y:
Cov(X,Y) = E[(X-μx )(Y-μy )]
(X-μx ): deviation X from its mean
(Y-μy ): deviation Y from its mean
Positive correlation: If an upward swing of X tend to be
accompanied by an upward swing of Y 
Cov (X,Y) >0  Positively correlated
Negative correlation: If an upward swing of X tend to be
accompanied by a downward swing of Y  Cov(X,Y) < 0
 Negatively correlated
No correlation: If a swing of X is not accompanied by a
systematic swing of Y  Cov(X,Y) = 0  X and Y are
uncorrelated/independent
Correlation limitations: values depends on the units of
measurement
Correlation coefficient is defined as
where and are the standard deviation of X and Y,
respectively
takes value between -1 and +1, independent of units of
measurement of X and Y
Covariance of X and X
1. xad-sale=read.csv(file.choose(),header=T)
2. Use cov() to obtain covariance and cor() to obtain
correlation coefficient
3. Use plot(sale,xad) to generate a scatterplot of these
2 variables
  )
Conditional distribution (of a random variable):
Conditional expectations:
Week 5 Tutorial
Q1. Determine each of the following probabilities:
Pr(X=2)
Pr(X2 and Y2)
Pr(X=Y)
>Q1=read.csv(file.choose(),header=T)
>sum(Q1$probabilities[Q1$x==2])
>sum(Q1$probabilities[Q1$y<=2 & Q1$x<=2])
>sum(Q1$probabilities[Q1$x==Q1$y])
Q2 What is the joint probability Pr(X=4,Y=0)?
What is the marginal probability function f(X=4)?
What is the conditional probability function of Y given
X=4?
What is the conditional mean of Y given X=4?
>Q2=read.csv(file.choose(),header=T)
>View()
>sum(Q7$frequencies)  to calculate total number
>Q7$probabilities <-Q7$frequencies / 200
>sum(Q7$probabilities[Q7$x==4 & Q7$y==0]) 0.01
>sum(Q7$probabilities[Q7$x==4 ]) 0.21
>P04=(Q7$probabilities[Q7$y==0 & >library(“datasets”) # Load the package for illustrative
Q7$x==4])/sum(Q7$probabilities[Q7$x==4])  
datasets
>P14=(Q7$probabilities[Q7$y==1 & >chick<-ChickWeight #For detail, ?ChickWeight
Q7$x==4])/sum(Q7$probabilities[Q7$x==4]) >mean(chick$weight)
>P24=(Q7$probabilities[Q7$y==2 & >var(chick$weight)
Q7$x==4])/sum(Q7$probabilities[Q7$x==4]) >sd(chick$weight)
>P34=(Q7$probabilities[Q7$y==3 & >range(chick$weight) # returns the minimum and
Q7$x==4])/sum(Q7$probabilities[Q7$x==4]) maximum
>cor(cbind(chick$weight,chick$Time)) #correlation btw
>EY_X4=sum(c(0,1,2,3)*c(P04,P14,P24,P34)) weight and time
Q3. Suppose that X any Y are negatively correlated. Is The 1st quartile () is the 0.25 quantile (or 25th percentile)
Var(X+Y) larger or smaller than Var(X-Y)? The 3rd quartile () is the 0.75 quantile (or 75th percentile)
The Interquartile range (IQR) is -
Var(X+Y)=Var(X)+Var(Y)+2Cov(X,Y) and Var(X-Y)=Var(X)
+Var(Y)-2Cov(X,Y). Since Cov(X,Y)<Var(X-Y). >library(“datasets”) # Load the package for illustrative
Q4. Suppose that X and Y are random variables such that
datasets
>chick<-ChickWeight #For detail, ?ChickWeight
Var(X)=9, Var(Y)=4, and (X,Y)=. Determine:
(1)Var(X+Y)
>summary(chick$weight) #conveniently give you a summary
table of quartiles, median, mean, etc
(2)Var(X-3Y+4) >quantile(chick$weight) # returns Q1 to Q4 of the sample
>quantile(chick$weight,p=0.5) # Q2=median
Cov(X,Y) = ρ(X,Y)σxσy = − 1 6 × 3 × 2 = −1 >quantile(chick$weight,p=0.25) # Q1
(1) Var(X+Y)=Var(X)+Var(Y)+2Cov(X,Y)=11 >quantile(chick$weight,p=0.75)-
(2) Var(X-3Y+4)=Var(X)+9Var(Y) –2×3×Cov(X,Y)=51 quantile(chick$weight,p=0.25) # the IQR
Week 6:
Statistical inference: process of using partial data to infer the
properties of the population
1. Modelling assumptions
2. Sampling
3. Making inferences
Sampling is the process of obtaining samples from the
population
Iid: independently and identically distributed
A statistic is a real-value function of a random sample:
For a size- random sample:
Measure of central location: Sample mean, Sample median
Measure of dispersions: Sample variance (standard
deviations), Sample range (max-min) & Interquartile range
-the formula for sample variance is slightly different. Refer to
any textbook for the formula
Measure of association: Sample correlation coefficient