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Please see the picture attached to solve the problem 2. Corporate governance mechanisms are organizational practices aimed at ensuring that publicly traded rms act in

Please see the picture attached to solve the problem

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2. Corporate governance mechanisms are organizational practices aimed at ensuring that publicly traded rms act in the interest of their shareholders. One such practice is having an independent financial expert (IFE) serve on the rm's board. The following table shows the joint probability distribution between whether a rm has an IFE on its board (X) and whether it has had to restate its earnings (Y), a sign of serious accounting irregularities. Did Not Restate Earnings iY=01 Restated Earnings (Y=1i NoIFE on boardiX=0l _ _ IFE on board (X=1i \" _ a. Fill in the missing values in the table (the row and column corresponding to \"Total"). b. What type of random variables are X and Y? (That is, discrete? or continuous?) What are their distributions? (That is, Normal? or Bernoulli? or Uniform?) c. Compute E(Y). What does this number mean (in words)? d. Compute E(X). What does this number mean (in words)? e. Compute E(Y|X=0) and E(Y|X=1). What do these numbers mean (in words)? What (if anything) does this tell you about having lFEs on corporate boards? f. A randomly selected firm (from this population) has had to restate its earnings. What is the probability that it has an IFE on its board? How would your answer have differed if you did not know whether or not it had to restate its earnings? g. Are X and Y independent? Explain

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