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Introduction To Probability Tutorial 6 Weeks 7

This document introduces concepts of probability and provides examples of calculating expectations, variances, and probabilities for various random variables and distributions. It covers independent random variables, the binomial distribution, the geometric distribution, and the uniform distribution. It includes examples such as calculating the mean and variance of sums of random variables, the average and total heights of components, returns on mutual funds, outcomes of dice rolls and coin flips, and voltages of batteries.

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Phan Như
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189 views

Introduction To Probability Tutorial 6 Weeks 7

This document introduces concepts of probability and provides examples of calculating expectations, variances, and probabilities for various random variables and distributions. It covers independent random variables, the binomial distribution, the geometric distribution, and the uniform distribution. It includes examples such as calculating the mean and variance of sums of random variables, the average and total heights of components, returns on mutual funds, outcomes of dice rolls and coin flips, and voltages of batteries.

Uploaded by

Phan Như
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Introduction to Probability

Tutorial 6
Weeks 7

1. Suppose that the random variables X , Y and Z are independent with E(X) = 2, Var(X) = 4, E(Y ) = −3,
Var(Y) = 2, E(Z) = 8 and Var(Z) = 7. Calculate the expectation and variance of the following random
variables.
(a) 3X + 7 (b) 4X − 3Y (c) 5X − 9Z + 8 (d) X + 2Y + 3Z

2. Recall that for any function g(X) of a random variable X ,


Z
E(g(X)) = g(x) f (x) dx,

where f (x) is the probability density function of X . Use this result to show that

E(aX + b) = aE(X) + b

and
Var(aX + b) = a2 Var(X).

3. Suppose that components are manufactured such that their heights are independent of each other with
µ = 65.9 and σ = 0.32.

(a) What are the mean and the standard deviation of the average height of ve components?
(b) If eight components are stacked on top of each other, what are the mean and the standard deviation
of the total height?

4. If $x is invested in mutual fund A, the annual return has an expectation of $0.1x and a standard deviation
of $0.02x. If $x is invested in mutual fund B, the annual return has an expectation of $0.1x and a standard
deviation of $0.03x. Suppose that the returns on the two funds are independent of each other and that I
have $1000 to invest.
(a) What are the expectation and variance of my annual return if I invest all my money in fund A?
(b) What are the expectation and variance of my annual return if I invest all my money in fund B?
(c) What are the expectation and variance of my total annual return if I invest half of my money in fund
A and half in fund B?
(d) Suppose I invest $x in fund A and the rest of my money in fund B. What value of x minimizes the
variance of my total annual return?
Explain why your answers illustrate the importance of diversity in an investment strategy.

5. Suppose that X ∼ B(10, 0.12). Calculate


(a) P (X = 3) (b) P (X = 6) (c) P (X ≤ 2)
(d) P (X ≥ 7) (e) E(X) (f) Var(X )

6. Draw line graphs of the probability mass functions of a B(6, 0.5) distribution and a B(6, 0.7) distribution.
Mark the expected values of the distributions on the line graphs and calculate the standard deviations of the
two distributions.

1
7. A fair die is rolled 8 times. Calculate the probability that there are:
(a) Exactly 5 even numbers
(b) Exactly one 6
(c) No 4s

8. Consider 2 independent binomial random variables X1 ∼ B(n1 , p) and X2 ∼ B(n2 , p). If Y = X1 + X2 ,


explain why Y ∼ B(n1 + n2 , p).

9. If X has a geometric distribution with parameter p = 0.7, calculate


(a) P (X = 4) (b) P (X = 1) (c) P (X ≤ 5) (d) P (X ≥ 8)

10. Suppose that X ∼ U (−3, 8). Find:

(a) E(X)
(b) The standard deviation of X
(c) P (0 ≤ X ≤ 4)

11. A new battery supposedly with a charge of 1.5 volts actually has a voltage with a uniform distribution
between 1.43 and 1.6 volts.
(a) What is the expectation of the voltage?
(b) What is the standard deviation of the voltage?
(c) What is the cumulative distribution function of the voltage?
(d) What is the probability that a battery has a voltage less than 1.48 volts?
(e) If a box contains 50 batteries, what are the expectation and variance of the number of batteries in
the box with a voltage less than 1.5 volts?

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