A certain process for producing an industrial chemical yields a product containing two predominant pes of impurities. For a certain volume of sample from this process, let X₁ denote the proportion of npurities in the sample and let X₂ denote the proportion of type I impurity among all impurities found uppose the joint distribution of X₁ and X₂ can be modeled by the following function: f(x, y) = {2(1-x₂) -x₁) 0≤x₁ ≤ 1,0 ≤ x₂ ≤ 1 0 elsewhere
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- If F(x1, x2, x3) is the value of the joint distribution function of X1, X2, and X3 at (x1, x2, x3), show that the joint marginal distribution function of X1 and X3 is given by M(x1, x3) = F(x1, q, x3) for −q < x1 < q, −q < x3 < q and that the marginal distribution function of X1 is given by G(x1) = F(x1, q, q) for −q < x1 < q With reference to Example 19, use these results to find (a) the joint marginal distribution function of X1 and X3; (b) the marginal distribution function of X1.A system consists of two components whose lifetimes (in years) X1, X2 are inde-pendent and identically distributed with pdf f(x) = 0.5e−0.5x, x >0. (a) Show that the mean of X is 2 and use this to find E(X2−2X1). (b) ComputeP(X2= 2X1) andP(X2>2X1). (c) ComputeCov(X1, X2−2X1). You may use the fact that Var(X1) = 4.Let X be the number of microorganisms in a proliferation culture whose Function of Cumulative Distribution (fda) is given by: F(x) = 1 − e−λx, for x > 0. What is the value of λ such that P(X ≥ 10.14) = 0.8
- If the probability density of X is given by f(x) =2x−3 for x > 10 elsewherecheck whether its mean and its variance exist.Suppose that X is a continuous unknown all of whose values are between -3 and 3 and whose PDF, denoted f , is given by f ( x ) = c ( 9 − x^2 ) , − 3 ≤ x ≤ 3 , and where c is a positive normalizing constant. What is the variance of X?Let X1, X2 denote two independent variables, each with a x^2(2) distribution. Find the joint pdf of Y1=X1 and Y2 = X2+X1. Note that the support of Y1, Y2 is 0<y1<y2<infinity. Also, find the marginal pdf of wach Y1 and Y2. Are Y1 and Y2 independent?
- X is normally distributed with standarddeviation of 2 and a mean of 10. solve for x(a) P(X > x) = 0.95 (b) P(x < X < 10) = 0.2 (c) P(-x < X - 10 < x) = 0.95Let X1, .... Xn be a random sample from a population with location pdf f(x-Q). Show that the order statistics, T(X1, ...., Xn) = (X(1), ... X(n)) are a sufficient statistics for Q and no further reduction is possible?If X has the discrete uniform distribution f(x) = 1k for x = 1, 2, ... , k, show that(a) its mean is μ = k + 12 ;(b) its variance is σ2 = k2 − 112
- A manufacturing firm, Caleb Corp, produces and sells product in its home (US) market, and in a foreign market. There is inherent risk in the revenues collected from the foreign market due to volatility in the exchange rate. Under a benchmark strategy, all of the production takes place in the home country. The resulting expected profits for Caleb Corp are variable, due to variation in the exchange rate. As an approximation, the firm has estimated profits for five possible ranges of the exchange rate, with profit represented as a lottery, L= (.2, 150; .2, 200; .3, 220; .2,250; .1, 270) The probabilities are estimated probabilities for the different ranges. The outcomes in this lottery are the estimated final profit levels (not changes in profit). (a) Calculate the expected profit if the firm follows this benchmark strategy, i.e., E(L)A manufacturing firm, Caleb Corp, produces and sells product in its home (US) market, and in a foreign market. There is inherent risk in the revenues collected from the foreign market due to volatility in the exchange rate. Under a benchmark strategy, all of the production takes place in the home country. The resulting expected profits for Caleb Corp are variable, due to variation in the exchange rate. As an approximation, the firm has estimated profits for five possible ranges of the exchange rate, with profit represented as a lottery, L= (.2, 150; .2, 200; .3, 220; .2,250; .1, 270) The probabilities are estimated probabilities for the different ranges. The outcomes in this lottery are the estimated final profit levels (not changes in profit). Now suppose the firm can also buy forward contracts on foreign currency to neutralize the effect of the exchange rate on profits. Assume that these provide complete hedging, but that it involves an additional cost, so that following the…Assume δ = 0.05, ̄Ax = 0.06, 2 ̄Ax = 0.0040. A group of 100 lives age x purchasefully continuous whole life policies of face value $1,000 for continuous premiums of $3.50per year. Let L be the aggregate loss function (L =100∑i=1Li, where Li represents the netfuture loss of individual i). Calculate the mean and variance of the aggregate loss L.