Astandardizedvariable Y dealing withafinancialoutcomeisconsideredtotakeanunusually extreme valueif y > 3. Find P(Y > 3) if (a) Y is
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Astandardizedvariable Y dealing withafinancialoutcomeisconsideredtotakeanunusually extreme valueif y > 3. Find P(Y > 3) if
(a) Y is modeledashavingastandardnormaldistri-
bution Y ∼ N(0, 1),
(b) Y instead behaveslikearatioofstandardnormalrandomvariables, in whichcase Y has thestandardCauchydistribution(4.11).Whatdoyouobserve?
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Related Book For
Foundations Of Statistics For Data Scientists With R And Python
ISBN: 9780367748456
1st Edition
Authors: Alan Agresti
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