2. Let X be a discrete random variable with pmf f(x) = log₁0 (²+¹), x = 1,2, ...,9. (This distribution, known as the Benford distribution, has been shown to accurately model the probabilities of the leading significant digit in numbers occurring in many datasets.) a) Verify that f(x) satisfies the conditions of a pmf. b) Find the cdf of X.

The Volatility X for the S&P stock index on a given day is a normal random variable with mean = 10 and standard deviation = 2 The volatilities recorded over a 100-day period on the S&P500 are Y1, Y2, ... Y100. Assume that these Yi's are independent and identically distributed, uniform on the interval [5,15]. Let V = (Y1 + Y2 + ... + Y100)/100. What approximately is P[9.5 < V < 10.5]?

Suppose that the time. in days, required to repair a heat pump is a random variable X having a gamma distribution with parameters k = 8 and A = 2. What is the probability that on the next service call (a) at most 3 day will be required to repair the heat pump? (b) at least 2 days will be required to repair the heat pump? %3D %3D

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