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Suppose X ~ N(5,1), Y ~ N(6,4), and X and Y are independent.

(a)What is P(5 < X < 6 & Y < 6)? (answer to 3 decimals)

(b) What is the expected value of X - Y?

(c) What is variance of X - Y?

(d) What is P(X < Y + 1)? Answer to 3 decimals

(e) Suppose now that the Cov[X,Y] = -1. What is P(X < Y + 1)? Answer to 3 decimals

User Deekshith
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Final answer:

a) The probability P(5 < X < 6 & Y < 6) is 0.171. b) The expected value of X - Y is -1. c) The variance of X - Y is 5. d) The probability P(X < Y + 1) is 0.420. e) When Cov[X,Y] = -1, the probability P(X < Y + 1) remains 0.420.

Step-by-step explanation:

(a) To find P(5 < X < 6 & Y < 6), we need to find the common area under the curves of X and Y.

Since X ~ N(5,1), we can convert the inequalities to standard normal form:

P(0 < Z < 1) = P(Z < 1) - P(Z < 0) = 0.841 - 0.5 = 0.341

Similarly, since Y ~ N(6,4), we can convert the inequality to standard normal form:

P((Y-6)/2 < 0) = P(Z < 0) = 0.500

Therefore, P(5 < X < 6 & Y < 6) = P(0 < Z < 1) * P(Z < 0) = 0.341 * 0.500 = 0.171

(b) The expected value of X - Y is the difference of the expected values: E(X-Y) = E(X) - E(Y) = 5 - 6 = -1

(c) The variance of X - Y is the sum of the variances: Var(X-Y) = Var(X) + Var(Y) = 1 + 4 = 5

(d) To find P(X < Y + 1), we need to convert the inequality to standard normal form:

P((X - (Y+1))/sqrt(Var(X)+Var(Y))) < 0 = P(((X-Y)-1)/sqrt(5)) < 0

Since X and Y are independent, the difference (X-Y) follows a normal distribution with mean (Mean(X) - Mean(Y)) and variance (Var(X) + Var(Y)). Therefore, we can convert the inequality to standard normal form:

P((Z-1)/sqrt(5)) < 0 = P(Z < 1/sqrt(5))

= 0.420

(e) When the covariance between X and Y is -1, it affects the variance of the difference (X-Y). The variance is given by Var(X-Y) = Var(X) + Var(Y) - 2*Cov(X,Y), where Cov(X,Y) is the covariance between X and Y.

Therefore, the variance is 1 + 4 - 2*(-1) = 5. Since the variance remains the same, the probability P(X < Y + 1) will also remain the same: 0.420

User Ascandroli
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