Let X, and S? be the sample mean and sample variance calculated from n number of Normal (u1, 01) random variables. Let X, and S, be the sample mean and sample variance calculated from n2 number of Normal(u2, 02) random variables. (a). Show that X - X, is an unbiased estimator of u1 - p2. (b). Find the standard deviation of X1 – X2. (C). Propose an estimator to estimate the standard deviation of X- X2. (d). Suppose that the two samples have the same variance o? = o = o?. Show that (n)-1)S+(n2-1)S; n+n2-2 is an unbiased estimator of o2. (e). In the setting of part (d), compute the relative efficiency of S? to S for estimating o?.
Continuous Probability Distributions
Probability distributions are of two types, which are continuous probability distributions and discrete probability distributions. A continuous probability distribution contains an infinite number of values. For example, if time is infinite: you could count from 0 to a trillion seconds, billion seconds, so on indefinitely. A discrete probability distribution consists of only a countable set of possible values.
Normal Distribution
Suppose we had to design a bathroom weighing scale, how would we decide what should be the range of the weighing machine? Would we take the highest recorded human weight in history and use that as the upper limit for our weighing scale? This may not be a great idea as the sensitivity of the scale would get reduced if the range is too large. At the same time, if we keep the upper limit too low, it may not be usable for a large percentage of the population!
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