I need explanation step by step

L3_Q1

1.Mean of X = 0.15 Mean of Y =.12 Variance of X =.20 Variance of Y =.25 Covariance between X and Y = -.2 U= 0.5X + 3 V=2Y+0.5 The Mean of V is?(Single Choice)*

• 3.075
• 2.04
• 0.74
• 0.12

L3_Q2

1.Mean of X = 0.15 Mean of Y =.12 Variance of X =.20 Variance of Y =.25 Covariance between X and Y = -.2 U= 0.5X + 3 V=2Y+0.5 The variance of U is?(Single Choice)*

• 0.05
• 0.50
• 0.75
• 1.00

L3_Q3

1.Mean of X = 0.15 Mean of Y =.12 Variance of X =.20 Variance of Y =.25 Covariance between X and Y = -.2 U= 0.5X + 3 V=2Y+0.5 The covariance between U and V?(Single Choice)*

• -0.2
• 0
• 0.2
• 0.67

L3_Q4

1.Mean of X = 0.15 Mean of Y =.12 Variance of X =.20 Variance of Y =.25 Covariance between X and Y = -.2 U= 0.5X + 3 V=2Y+0.5 The correlation between U and V?(Single Choice)*

• -1
• -0.89
• 0
• 0.67

L3_Q5

1.ERL has a 40% probability that EPS>$3. The probability that ERL's credit rating will be upgraded is 0.70 if EPS>$3 and 0.20 if EPS<=$3. If ERL's credit rating has been upgraded, what is the updated probability that its EPS>$3(Single Choice)*

• 0.4
• 0.7
• 0.8
• 1.0

L3_Q6

1.How many sequences of 10 moves belong to a group with 6 up moves? Given that stock price can either move up or down.(Single Choice)*

• 150
• 210
• 289
• 350

L3_Q7

1.In table 5.1 on Page 174 what is P(X<7)(Single Choice)*

• 0.750
• 0.875
• 0.625

L3_Q8

1.A survey finds that 60% of households have a laptop. Using binomial probability distribution, the probability that exactly four households will have a laptop out of a random selection of six households is:(Single Choice)*

• 0.240
• 0.311
• 0.361
• 0.455