#8) Consider the following information about random variables X, Y, A, and B: µx=4 Ox= 6 µy= 8 Oy= 10 A = 0.4X + 0.6Y B = 0.8X – 0.2Y a) Suppose that pxy = 0.2. What is µa? b) Suppose that pxy = 0.1. What is o? c) Suppose that pxy = 0.5. What is ơĄ?

Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
Publisher:NICHOLSON
Chapter7: Uncertainty
Section: Chapter Questions
Problem 7.3P
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Round all final answers to four decimal places if necessary. 

#8) Consider the following information about random variables X, Y, A, and B:
µx= 4
Ox = 6
Hy= 8
Oy = 10
A = 0.4X + 0.6Y
B = 0.8X
0.2Y
a) Suppose that pxy = 0.2. What is µa?
b) Suppose that pxy = 0.1. What is o?
c) Suppose that pxy= 0.5. What is o4?
Transcribed Image Text:#8) Consider the following information about random variables X, Y, A, and B: µx= 4 Ox = 6 Hy= 8 Oy = 10 A = 0.4X + 0.6Y B = 0.8X 0.2Y a) Suppose that pxy = 0.2. What is µa? b) Suppose that pxy = 0.1. What is o? c) Suppose that pxy= 0.5. What is o4?
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