HW 4 Solutions


H&G 2.5

(a)
x
f(x)
1
1/6
2
1/6
3
1/6
4
1/6
5
1/6
6
1/6

b) P(X=4) = f(4) = 1/6
P(X = 4 or 5) = P(X = 4) + P(X = 5) = f(4) + f(6) = 2/6

c) E(X) = (1/6) * 1 + (1/6)*2 + .... + (1/6) *6 = 3.5 using  Equation 2.3.1
Meaning:  If we were to toss the die infinitely many times, the average would be 3.5.

d) E(X2) = (1/6)*12 + (1/6)*22 + (1/6)*32 + (1/6)*42 + (1/6)*52 + (1/6)*62 = 15.1667
using Equation 2.3.2a

e) There are two ways. The longer way is to use the definition given in class:
Var(X) = E(X - E(X))2 = (1-3.5)2 * (1/6) + (2 - 3.5)2 * (1/6) + .... + (6-3.5)2 * (1/6)

The easier way is to use 2.3.4

Var(X) = E(X2) - (E(X))2 = 15.1667 - 3.52 = 2.9167

p. 226, #14
The probabilities have to add to 1.  So p(0) + p(3) + p(7) + p(11) + p(21) + p(2100) + p(free ticket) = 1

but we're ignoring p(free ticket), and so
p(0) + p(3) + .. + p(2100) = .9

To make all of the probabilities add to 1, we divide both sides of the equation by .9.  And the table of probabilities is then:

prize
0
3
7
11
21
2100
prob
?
.03703704
.011111
.011111
.0074
.00000370

X = payoff
The missing probability is 1 - (.0111111*2 + .03703704 +  + .0074 + .0000037) = .933337

E(X) = 3*.03703704 + 7*.011111 + 11*.0111111 + 21*.0074 + 2100*.0000037  = $.474

Var(X) = (0 - .474)^2 * .03703704 + (7 - .474)^2* .0111111 + (11-.474)^2 * .011111 + (21-.474)^2*.0074 + (2100-.474)^2 * .00000370 = 21.13997

So SD(X) = sqrt(21.13997) = 4.60