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Econ 7330, Problem Set 2: September 14, 2016

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43 views2 pages

Econ 7330, Problem Set 2: September 14, 2016

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hm512771
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Econ 7330, Problem Set 2

September 14, 2016

This is due by Noon on Friday, 9/23. Please hand it in no later than the beginning of
section. Feel free to work in groups, but write your solutions individually.

1. Consider the sample space


that

2x

S = {x|2x Z++ } (S

is the space of all numbers

x such

is a positive integer).

a) Describe in words an experiment that this sample space would correspond to.
b) What are the 4 smallest outcomes in

S?

A = {x|x Z++ } and B = {x|x/2 Z++ }. Is A B ? Is


c
is A B ? What is A B ? What is A ? Are A and B disjoint?

c) Consider the events

B A?

What

d) Consider the collection of events

Ci = {i, i + 1/2}

for

pairwise disjoint? If so, do they form a partition of


2. Consider the sample space
on

S = {x|x Z}.

i = 1, 2, ....

Are the

Ci

S?

Construct three examples of

-algebras

S.

3. The Texas Lottery (Lotto Texas) is set up as follows: Individuals purchase tickets
and choose 6 numbers of their choice between 1-60.

On Wednesday nights, 6

numbers between 1-60 are randomly drawn without replacement. Cash prizes of
increasing value are given out to people who match 3, 4, 5 or all 6 numbers  the
ordering does not matter.
a) What is the probability that a lottery player will match exactly 5 numbers?
b) What is the probability that a lottery player will win any cash prize?
c) Now suppose there was only a cash prize for matching all 6 numbers. If the
total value of the prize is $10 million dollars, about how much would you pay
for a ticket, and why? (There is no single correct answer here, as you'll learn
in your micro theory classes).
4. Consider events

A, B S

where

P (B) > 0.

axioms of probability (Kolmogorov's axioms).

Verify that

P (A|B)

satises the

5. There are two events

and

with

P (A) > 0

P (B) > 0. You are to prove


P (A|B) = 0, P (B|A) = 0) and

and

that they cannot be both mutually exclusive (i.e.,


independent.

a) Write down the two logical statements that are necessary and sucient for
this proof. (Hint: they should be of the form if
b) Prove both statements.

then

y )

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