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Apollo is uncertain of how he feels about Olga. He thinks she makes him happy, but he is not sure. Below is the joint distribution
Apollo is uncertain of how he feels about Olga. He thinks she makes him happy, but he is not sure. Below is the joint distribution for whether Olga is around, X ≡1{Olga around}, and whether Apollo is happy, Y ≡1{Apollo is happy}
Joint distribution
X = 0 X = 1
Y = 0 0.4 0.0
Y = 1 0.3 0.3
1. Let A be an arbitrary event. How should we interpret E[1{A}]?
2. Would you say Apollo is a happy person? Why or why not?
3. Would you say Apollo is often around Olga? Why or why not?
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Solution 1 E1A is the expected value of the indicator function of event A The indicator function of ...
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