h(x,y) 19 20 24 0.05 0.10 21 x 25 0.10 0.40 | 0.15 26 0.05 0.15 Table 1: Joint probability density function h(x.y) of X and Y. a) Determine P({X s 25}n{Y z 20}). b) Determine E(X | Y = 20). Without further computation you are allowed to use that E(X) = 25.05, E(Y) = 20.15, Ox = 0.5895 and oy = 0.6538. c) Determine the correlation coefficient of X and Y. d) Suppose you invest e5000 in these two shares: half of this money, so e2500, is spent on share I and the other e2500 is spent on share II. There are no additional costs involved in this investment. Let U be the value of your invested money next month. Determine E(U).

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Equations and Inequations

Equations and inequalities describe the relationship between two mathematical expressions.

Linear Functions

A linear function can just be a constant, or it can be the constant multiplied with the variable like x or y. If the variables are of the form, x2, x1/2 or y2 it is not linear. The exponent over the variables should always be 1.