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- Repeat Example 1a for the function f(x)=2x2 on [1,2]. What is the probability that X will be between 32 and 2?Consider the three functions I. f(x)= {1-x if 0 < x < 2 {0 otherwise II. f(x)= {1+x if 0 < x < 2 {0 otherwise III. f(x)= {(3/27)x^2) if 0< x < 3) {0 otherwise Which of these above functions can be probability distributions? And why?Let rt be a log return. Suppose that r0, r1, . . . are i.i.d. N(0, 0.01^2).(a) What is the distribution of rt(8) = rt + rt−1 + rt−2 +...+ rt−7?(b) What is the covariance between r7(3) and r9(3)?(c) What is the conditional distribution r17(3) given that r16 =0.004 (d) What is the probability that the gross return over the first 10 times periods is at least 1.05?
- Suppose that the continuous random variable X has cumulative distribution function given by F(x)= 0, if x < sqrt(2); x2-2, if sqrt(2) <= x <= sqrt(3); 1, if sqrt(3) <= x Find the probability density function of X.The life expectancy (in years) of a certain brand of clock radio is a continuous random variable with the probability density function below. 2/ (x+ 2)? if x20 f(x) = otherwise (A) Find the probability that a randomly selected clock lasts at most 4 years. (B) Find the probability that a randomly selected clock radio lasts from 4 to 9 years. (C) Graph y = f(x) for [0, 9] and show the shaded region for part (A). (A) What is the probability that a clock will last no more than 4 years? (Type a decimal rounded to three decimal places as needed.) 3 DEA gasoline station gets its supply once a week. Suppose the PDF of X = demand in thousands of gallons for gasoline is: fx(x) = 5(1 – x)*I(0.1)(x) a. What is the probability that the demand for gasoline in a given week is more than 500 gallons? b. How much gasoline must the station get from its supplier in order for the probability that its supply will be exhausted in a given week shall be 0.01?(1) Let X b(16,- 5,-) find E(4- 3x) and distribution function.Delta Airlines quotes a flight time of 3 hours, 5 minutes for a particular flight. Suppose we believe that actual flight times are uniformly distributed between 3 hours and 3 hours, 20 minutes. (a) Show the graph of the probability density function for flight time. f(x) f(x) O O 3 20 1 10 1 20 f(x) 3 20 1 10 1 20 170 170 190 180 Flight Time in Minutes 180 190 Flight Time in Minutes min 200 (d) What is the expected flight time, in minutes? 200 X X 3 20 1 10 1 20 f(x) 3 20 1 10 1 20 170 (b) What is the probability that the flight will be no more than 5 minutes late? 170 (c) What is the probability that the flight will be more than 10 minutes late? 190 180 Flight Time in Minutes 190 180 Flight Time in Minutes 200 200 X X4. "Time headway" In highway traffic flow the elapsed time between the time that one car finishes passing a fixed point and the instant that the next car begins to pass that point is called time headway. Now, let X = the time headway for two randomly chosen consecutive cars on a highway during a period of heavy traffic flow. The following probability density function of X is suggested by traffic experts: f(x) = 0.15*e-0.15(x-0.5) for (x ≥ 0.5 sec) 0 otherwise a. Draw f(x) from x = 0 to x= 10 sec. b. Find P(X ≤ 5 sec) and show it on the figure you have drawn. c. What is E[X] and Var[X] ? d. Find Cumulative Distribution Function of X.A random variable X has probability density function (x² + 2x + 4) for 0 < x < 3 f(x) = otherwise. Which of the following gives the cumulative distribution function F(x)?SEE MORE QUESTIONS