ECON 333 - Summer 2023 Thomas Vigié

ECON 333: Statistical Analysis of Economic Data1

Problem Set 1
1. Expand the following summations:
Pn
(a) S = i=1 a
Pn
(b) S = i=1 i
P∞
(c) S = i=1 1i
1
Pn
(d) S = n i=1 Xi
Pn
(e) S = i=1 (Yi − Xi β)2
2. Consider a 6-faced die throw. Let X be the obtained number.
(a) What is the probability of obtaining a 7?
(b) What is the probability of obtaining a number strictly bigger than 4?
(c) What is the probability of obtaining a multiple of 3?
(d) What is the probability of not obtaining a 1, a 5 or a 6?
3. Consider a random variable X which follows a Bernoulli distribution with parameter p.
(a) What is the expectation of X?
(b) Show that E[X k ] = p for any integer k.
(c) Compute the variance of X.
4. Consider a random variable X with an expectation of 2 and a variance of 5. Let Y = 0.5(X − 6).
(a) What is the expectation of Y ?
(b) What is the variance of Y ?
5. Consider the following contingency table for the random variables X and Y :
X=1 X=2 P(Y )
Y =0 0.15 0.07
Y =1 0.15 0.63
P(X) 1
(a) Find the marginal distribution of X and Y .
(b) What is the probability that X equals 2 given that Y is equal to 0? Equal to 1?
(c) What is the probability that Y equals 1 given that X is equal to 1? Equal to 2?
(d) What is the expectation of X given that Y is equal to 1?
(e) What is the expectation of Y ?
(f) What is the variance of Y ?

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