(a) Find the conditional probability of Y=0 given X=1 (b) Find the expected value of X

A First Course in Probability (10th Edition)
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Chapter1: Combinatorial Analysis
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(a) Find the conditional probability of Y=0 given X=1 (b) Find the expected value of X
Define a pair of random variables X and Y as follows:
X = 1, if the pound value drops against the US Dollar next week;
X = 0, otherwise.
and
Y = 1, if the Bank of England raises interest rates next week;
Y = 0, otherwise.
An economist estimates the following joint probabilities:
X=0
X=1
Y=0
0.25 0.42
Y=1
0.05 0.28
Answer the following questions, rounding your answers to two decimal places where appropriate.
Transcribed Image Text:Define a pair of random variables X and Y as follows: X = 1, if the pound value drops against the US Dollar next week; X = 0, otherwise. and Y = 1, if the Bank of England raises interest rates next week; Y = 0, otherwise. An economist estimates the following joint probabilities: X=0 X=1 Y=0 0.25 0.42 Y=1 0.05 0.28 Answer the following questions, rounding your answers to two decimal places where appropriate.
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