Question
Solve the following in R Let X be a random variable that is normally distributed with mean 10 and standard deviation 2. Let Y be
Solve the following in R
Let X be a random variable that is normally distributed with mean 10 and standard deviation 2.
Let Y be a random variable that is normally distributed with mean 15 and standard deviation 1.
Let Z be a random variable that is 2X +3Y.
- Use simulation to estimate the correlation of Y and Z. What is your estimate of the correlation?
- Using your estimate from the previous part, and without additional simulation, what is the variance of Y + Z?
- Simulate Y + Z. What is the estimated variance of Y + Z based on the simulation?
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Financial Algebra advanced algebra with financial applications
Authors: Robert K. Gerver
1st edition
978-1285444857, 128544485X, 978-0357229101, 035722910X, 978-0538449670
