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Consider a coin for which the probability of obtaining a head on each given toss is 0.3. Suppose that the coin is to be tossed 15 times, and let X denote the number of heads that will be obtained.

  1. What prediction of X has the smallest M.S.E?
  2. What prediction of X has the smallest M.A.E?

Short Answer

Expert verified
  1. For the predicted value of 4.5, X has the smallest M.S.E.
  2. For the predicted value of 4, X has the smallest M.A.E.

Step by step solution

01

Given information

A coin for which the probability of obtaining a head is 0.3, is tossed 15 times. The random variable X denotes the number of heads obtained in 15 tosses.

02

Find mean of X

According to the question:

\(X \sim Binomial\left( {15,0.3} \right).\)

\(\begin{aligned}{}E\left( X \right) = np\\ = 15 \times 0.3\\ = 4.5.\end{aligned}\)

We know that \(M.S.E = E\left( {{{\left( {X - d} \right)}^2}} \right)\) is minimized when \(d = E\left( X \right) = 4.5\).

Hence, for the predicted value of 4.5, X has the smallest M.S.E.

03

Find median of X

The pdf of X is defined as:

\(\begin{aligned}{}f\left( x \right) = P\left( {X = x} \right)\\ &= \left( {\begin{aligned}{{}{}}n\\x\end{aligned}} \right){p^x}{\left( {1 - p} \right)^{n - x}}\\ &= \left( {\begin{aligned}{{}{}}{15}\\x\end{aligned}} \right){\left( {0.3} \right)^x}{\left( {0.7} \right)^{15 - x}}.\end{aligned}\)

The cdf of X is defined as:

\(\begin{aligned}{}F\left( x \right) &= P\left( {X \le x} \right)\\ &= \sum\limits_{x = 0}^x {P\left( {X = x} \right)} \\ &= \sum\limits_{x = 0}^x {\left( {\begin{aligned}{{}{}}{15}\\x\end{aligned}} \right){{\left( {0.3} \right)}^x}{{\left( {0.7} \right)}^{15 - x}}} .\end{aligned}\)

Create the following table using the formula for the pdf and the cdf of a binomial distribution:

X

\(P\left( {X = x} \right)\)

\(P\left( {X \le x} \right)\)

\(P\left( {X \ge x} \right)\)

0

0.004748

0.004748

1

1

0.03052

0.035268

0.995252438

2

0.09156

0.126828

0.9647324

3

0.17004

0.296868

0.873172285

4

0.218623

0.515491

0.703132072

5

0.20613

0.721621

0.484508941

6

0.147236

0.868857

0.27837856

7

0.08113

0.949987

0.131142573

8

0.03477

0.984757

0.05001254

9

0.01159

0.996347

0.015242526

10

0.00298

0.999328

0.003652521

11

0.000581

0.999908

0.000672234

12

8.29E-05

0.999991

9.16587E-05

13

8.2E-06

0.999999

8.71935E-06

14

5.02E-07

1

5.16561E-07

15

1.43E-08

1

1.43489E-08

From the above table, it is observed that\(P\left( {X \le 4} \right) \ge 0.5\;{\rm{and}}\;P\left( {X \ge 4} \right) \ge 0.5.\)

Hence, 4 is the median of X.

We know that\(M.A.E = E\left( {\left| {X - d} \right|} \right)\) is minimized when d is the median of X.

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