Question

Let X and Y have the following joint distribution X/Y 0 1 0 0.4 0.1 1...

Let X and Y have the following joint distribution

X/Y 0 1
0 0.4 0.1
1 0.1 0.1
2 0.1 0.2

a) Find Cov(4+2X, 3-2Y)

b) Let Z = 3X-2Y+2 Find E[Z] and σ 2Z

c) Calculate the correlation coefficient between X and Y. What does this suggest about the relationship between X and Y?

d) Show that for two nonzero constants a and b
Cov(X+a, Y+b) = Cov(X,Y)

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Answer #1

o 02 0 2 0.3 2 a. 6 Nx).76 E(y ) =04) +J))+2(0)+ 2a Co2) (2,3)(2x,216l 0.8

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