Using the random variables X and Y from Table 2.2, consider two new random variables W = 4 + 8X and V = 11 - 2Y. Compute (a) E(W) and E(V); (b) J2W and J2V; and (c) JWV and corr(W, V). TABLE 2.2 Joint Distribution of Weather Conditions and Commuting TimesRain (X = 0)0.15No Rain (X = 1)TotalLong commute (Y = 0)Short commute (Y = 1)0.070.220.150.630.78Total0.300.701.00

Given: two new random variables W = 4 + 8X V = 11 - 2Y To know the mean of W: E(W) = E(4 + 8X)…

Answered: TABLE 2.2 Joint Distribution of Weather…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Using the random variables X and Y from Table 2.2, consider two new random variables W = 4 + 8X and V = 11 - 2Y. Compute (a) E(W) and E(V); (b) J²_W and J²_V; and (c) J_WV and corr(W, V).

TABLE 2.2 Joint Distribution of Weather Conditions and Commuting Times
Rain (X = 0)
0.15
No Rain (X = 1)
Total
Long commute (Y = 0)
Short commute (Y = 1)
0.07
0.22
0.15
0.63
0.78
Total
0.30
0.70
1.00

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