University of Alberta Econ 299 Assignment #3 Fall 2012 L. Priemaza This Christmas Bobo can either go on a Vegas Vacation (V), go on a road trip (R), or study Economics (E). He can also either have fun (F) or be sad (S) this Christmas. The joint pdf’s for Bobo’s Christmas are listed below: (9 marks) Activity:Vegas VacationRoad Trip (R)Economics (E)Fun (F)0.160.240.4Sad (S)0.040.060.1 Calculate marginal pdf’s of both variables (activity and utility). Calculate the probability that Bobo has fun if Bobo studies economics (even though we all know it’s impossible not to have fun with economics). Calculate the probability that Bobo went on a road trip if we know he had fun over Christmas. How do (b) and (c) help show that the two variables are statistically independent? Every year, Coraline gets to roll her six-sided birthday die. Two of the sides give her $100 for her birthday, three of the sides give her $50 for her birthday, and one side gives her $10 for her birthday. (4 marks) Calculate the expected value of Coraline’s birthday die. Calculate the variance of Coraline’s birthday die. Dr. Derivative can spend $10 or $80 on Halloween decorations, and get either 20 or 60 Trick-or-Treaters. (12 marks) $10$80200.40.2600.10.3 Calculate marginal pdf’s of both variables Calculate expected values of both variables Calculate covariance. What does this mean? Find the critical values for a 1 tail test where: (5 marks) df=54 on a t distribution (0.5% in the tail) df=27 on a Chi-Squared distribution (5% in the tail) df1=8, df2=10 on an F distribution (1% in the tail) Gangnam style parodies have an average humor of 75. Assuming a normal distribution and a standard deviation of 5, calculate: (7 marks) The probability a random parody has a humor of greater than 87. The cut-off humor value for the 20% worst parodies. Use the following sample data for the next question: (22...
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