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Exercises 47 and 48 refer to the following setting. Two independent random variables Xand Yhave the probability distributions, means, and standard deviations shown.

48. Difference Let the random variable D=X-Y.

(a) Find all possible values of D. Compute the probability that Dtakes each of these values. Summarize the probability distribution ofD in a table.
(b) Show that the mean of Dis equal toX-Y.
(c) Confirm that the variance of Dis equal to X2+Y2.Find all possible values of D. Compute the probability that takes each of these values. Summarize the probability distribution of in a table.

Short Answer

Expert verified

(a) The probability distribution of Din a table as:

Value
Probability
-3
0.06
-2
0.15
1
0.14
0
0.35
1
0.09
3
0.21

(b) The mean of Dis equal to X-Y.

(c) Confirmed the variance of Dis equal to X2+Y2.

Step by step solution

01

Part (a) Step 1: Given information 

Consider the random variable T=X+Y. The values of Tis to compute the probability that Ttakes each of these values for the probability distribution.

02

Part (a) Step 2: Explanation 

According to the information, the possible values ofD are:
1-2=-114=322=024=2
Similarly,
52=354=1
Determine the probabilities by:
P(D=-3)=P(X=1)P(Y=4)=0.2(0.3)=0.06
P(D=-2)=P(X=2)P(Y=4)=0.5(0.3)=0.15
P(D=-1)=P(X=1)P(Y=2)=0.2(0.7)=0.14
P(D=0)=P(X=2)P(Y=2)=0.5(0.7)=0.35
Also,
P(D=1)=P(X=5)P(Y=4)=0.3(0.3)=0.09
P(D=3)=P(X=5)P(Y=2)=0.3(0.7)=0.21

03

Part (b) Step 1: Given information 

The random variable is D=X-Y. The mean of Dis equal to X-Y.

04

Part (b) Step 2: Explanation 

The mean ofT be calculated as:
D=xP(x)=3(0.06)+(2)(0.15)+.+3(0.21)=0.1

Then,

XY=2.7+2.6=0.1

05

Part (c) Step 1: Given Information

Confirm the variance of Dis equal to X2+Y2.

06

Part (c) Step 6: Explanation 

Determine the variance of D by:
D2=x2P(x)xP(x)2=320.06+220.15+..+320.21(0.1)2=3.25

Then,

X2+Y2=1.552+0.9172=3.2433

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