econ questions attached Document Preview: For each of the fo

econ questions attached Document Preview: For each of the fo

econ questions attached Document Preview: For each of the following two parts, you must justify your answer. No explanation = no credit. Partially correct explanations=partial credit.a) (10 points) True or false. For the events A and B, if (AnB) = , then the events are exhaustive.b) (10 points) True or false. For two events A and B, if P(A)=.3, P(B)=.25, and P(AUB)=.50, then A and B are mutually exclusive.2. A raffle is being held at a school to raise money for the library. The organizers sell 40 tickets. They will select 4 winning tickets at random for prizes.a) (10 points) How many different combinations of 4 winning tickets can there be?b) (10 points) Suppose you hold 6 tickets. What is the probability that you will win exactly 2 out of the 4 prizes.3. Let the random variable R denote the rate of return on an asset. R has the following pdf. R P(R=r) .3 .05 .2 .20 .1 .20 0 .20 -.1 .15 -.2 .10 -.3 .10 a. (10 points) What is the expected value and variance of R?b. (10 points) You are considering investing $150 in this asset. After 1 year, the value will be $150(1+R). What is the expected value andstandard deviationof the value of your asset in 1 year?4. Suppose the random variable X has a mean of 16 and a variance of 144. Y is a linear transformation of the form Y=a+bX. Y has a mean of 4 and variance 36. Assuming b>0, what are the values of a and b? (Hint: find b first.)5. Suppose cell phones are available in two basic types: Flashy or Dull. Furthermore, suppose cell phone owners fall into two basic categories: Hipsters or Grannies.Let .55 be the probability of being a Hipster. Also, 40% of cell phones are both Flashy and owned by Hipsters. Finally, if a cell phone is owned by a Granny, the probability of it being Dull is .90a) What is the probability that a cell phone is both Dull and owned by a Hipster.b) If a phone is owned by a Hipster, what is the probability it is Flashy.c) What is the probability that… Attachments: ekonomi.doc