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Problem Set 3 - Questions

This document contains a problem set with 8 questions related to probability distributions and statistics for economists. The questions cover topics like the binomial, hypergeometric, geometric, and continuous probability distributions. They involve calculating probabilities, means, variances, and determining what type of distribution applies in different scenarios involving random variables. The document provides context, formulas, and hints for students to solve the problems.

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53 views2 pages

Problem Set 3 - Questions

This document contains a problem set with 8 questions related to probability distributions and statistics for economists. The questions cover topics like the binomial, hypergeometric, geometric, and continuous probability distributions. They involve calculating probabilities, means, variances, and determining what type of distribution applies in different scenarios involving random variables. The document provides context, formulas, and hints for students to solve the problems.

Uploaded by

giz
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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METU Department of Economics Instructors: E. ERDIL, Y.

AKDI
ECON 205 - STATISTICS FOR ECONOMISTS I T.A.: Nurbanu HUYUGÜZEL
2017-2017 Fall S.A.: E. SINCI, D. VICDAN

PROBLEM SET 3 – QUESTIONS

1. Let k ≥1 be a positive integer and suppose that a series of independent Bernoulli trials,
each with success probability p, is performed until a total of k successes is recorded. If N
is the number of trials performed, show that the probability mass function of N is
𝑛−1
𝑝 (𝑛) = 𝑝 (1 − 𝑝) ,𝑛 ≥ 𝑘
𝑘−1
(Hint: For the k'th success to occur on the n'th trial, note that the n'th trial must be a
success and exactly k-1 successes must have occurred in the first n-1 trials.)

2. Let Y denote a geometric random variable with probability of success p.

a. Show that for a positive integer a, P(Y > a) = qa .


b. Show that for positive integers a and b,
P(Y > a + b|Y > a) = qb = P(Y > b).
This result implies that, for example, P(Y > 7|Y > 2) = P(Y > 5). Why do you think
this property is called the memoryless property of the geometric distribution?

3. In southern California, a growing number of individuals pursuing teaching credentials


are choosing paid internships over traditional student teaching programs. A group of
eight candidates for three local teaching positions consisted of five who had enrolled in
paid internships and three who enrolled in traditional student teaching programs. All
eight candidates appear to be equally qualified, so three are randomly selected to fill the
open positions. Let Y be the number of internship trained candidates who are hired.
a. Does Y have a binomial or hypergeometric distribution? Why?
b. Find the probability that two or more internship trained candidates are hired.
c. What are the mean and standard deviation of Y ?

4. A supermarket officer will hire 3 people out of 3 possible women and 4 possible men at
random as a cash handler. Let Y denote the number of men in his/her selection. Find the
probability distribution for Y. Argue whether it is a discrete probability distribution or
not. Decide on the type of this probability distribution.

5. Ali is always early for appointments, arriving between 10 minutes early to exactly on
time. The distribution function associated with X, the number of minutes early he
arrives, is as follows

1
METU Department of Economics Instructors: E. ERDIL, Y. AKDI
ECON 205 - STATISTICS FOR ECONOMISTS I T.A.: Nurbanu HUYUGÜZEL
2017-2017 Fall S.A.: E. SINCI, D. VICDAN

0 𝑥<0
⎧ 𝑥
⎪ 0≤𝑥<4
𝐹 (𝑥 ) = 40
⎨ 20𝑥 − 𝑥 − 40
⎪ 4 ≤ 𝑥 ≤ 10
60
⎩ 1 𝑥 > 10

a. Find the probability that Ali arrives at least 5 minutes early.


b. Find the probability density function of X.
c. Find the mean number of minutes that Ali is early for appointments.

6. The density function of X is given by;


𝑎𝑥 + 𝑏𝑥 , 0 ≤ 𝑥 ≤ 1
𝑓 (𝑥) =
0 , 𝑒𝑙𝑠𝑒𝑤ℎ𝑒𝑟𝑒
𝐸 (𝑋 ) = . Find a and b

7. Random variable X has CDF


0 𝑥<0
𝑥
𝐹 (𝑥 ) = 0≤𝑥≤2
2
1 𝑥>2
a. Find E(X)
b. Find V(X)

8. The bid that a competitor makes on a real estate property is estimated to be somewhere
between 0 and 3 million dollars. Specifically, the bit X is viewed to be a continuous
random variable with density function;

𝑐(9 − 𝑥 ) 𝑓𝑜𝑟 0 < 𝑥 < 3


𝑓 (𝑥) =
0 𝑜𝑡ℎ𝑒𝑟𝑤𝑖𝑠𝑒

You make a bid (without knowing the competitor’s bid). The higher of the two bids
wins.

a. Find the value of c that makes f(x) a density function.

b. Find the cumulative distribution function, F(x). Use the cumulative distribution
to determine the probability that you lose the bid if you make a bid of 2 million?
1 million?
c. Find the expected value and standard deviation for the competitor’s bid.

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