Homework Problem

Q1. CALCULATING EXPECTED VALUE AND VARIANCE FOR X

Expected Value:
With only 1 element having X = 1 and another with X = 100, and all others having X = 2, the
expected value is given by:

E( X )=(1 ×1)+(98× 2)+(1 ×100)=100201 ​=2.01

Variance:
Squared deviations from the mean for each outcome are calculated as follows:

( 1−2.01 )2 =1.0201

( 2−2.01 )2=0.0001

( 100−2.01 )2=9599.61

Multiplication of each deviation by its probability and summing:

Var ( X)= ( 1001 ) ×1.0201+( 100

98
)× 0.0001+( 1001 )× 9599.61= 96.0102
100
=0.9601

Q2. DETERMINING EXPECTED VALUE AND VARIANCE FOR Y

Expected Value:
As Y is the sum of two independent X's, the expected value is the sum of their individual
expected values:

E ( Y )=2× E ( X )=2∗2.01=4.02

Variance:
Similarly, the variance is the sum of their individual variances:

Var (Y )=2 ×Var ( X )=2∗0.9601=1.9202

Q3. COMPUTING EXPECTED VALUE AND VARIANCE FOR Z

Expected Value:
Z, the sum of a random number of X's, requires considering the expected value for each
possible number of repetitions (die rolls).

E ( Z )=n∗E ( X )

Where

n = no of times die rolls

Variance:
Similar to the expected value, calculating the variance for each possible number of
repetitions and weighting them by probability.

Var ( Z )=n∗Var ( X )

Where

n = no of times die rolls

Q4. EXPECTED VALUE, VARIANCE, AND STANDARD DEVIATION

FOR 1000 REPETITIONS

Expected Value:
E(Z )=1000 × E( X )=1000∗2.01=2010

Variance:
Var (Z)=1000× Var (X )=1000∗0.9601=960.1

Standard Deviation:
σ Z =√ Var ( Z )= √ 960.1 ≈ 30.98

Q5. PROBABILITY OF SUM BEING 60000:

Using the Central Limit Theorem to approximate Z's distribution as normal with mean 2010 and
standard deviation 30.98.afterwards, we can Calculate the probability of Z being 60000 using
standard normal cumulative distribution function (cdf). This probability is approximately 0.0456