Jointly distributed discrete random variables (lecture 7)

1.

LECTURE 7
JOINTLY DISTRIBUTED DISCRETE
RANDOM VARIABLES

2.

JOINTLY DISTRIBUTED DISCRETE RANDOM VARIABLES

3.

Consider a pair of random variables X and Y, respectively measuring a consumer’s satisfaction with food stores
in a particular town and the number of years of residence in that town.

4.

JOINTLY DISTRIBUTED DISCRETE RANDOM VARIABLES

5.

JOINTLY DISTRIBUTED DISCRETE RANDOM VARIABLES

6.

JOINTLY DISTRIBUTED DISCRETE RANDOM VARIABLES

7.

JOINTLY DISTRIBUTED DISCRETE RANDOM VARIABLES

8.

JOINTLY DISTRIBUTED DISCRETE RANDOM VARIABLES

9.

JOINTLY DISTRIBUTED DISCRETE RANDOM VARIABLES

10.

JOINTLY DISTRIBUTED DISCRETE RANDOM VARIABLES

11.

12.

Ex: An investor has $1000 to invest and two investment opportunities, each requiring a minimum of $500. The profit per $100
from the first can be represented by a random variable, X, having the probability function
X
-5
20
The profit pet $100 from the second is given by the random variable, Y,
P(X)
0.4
0.6
Y
0
25
P(Y)
0.6
0.4
The random variables x And Y are independent. The investor has the following 3 possible strategies;
a. Invest $1000 in the first option
b. Invest $1000 in the second option
c. Invest $500 in each options.
Which opportunity should the investor choose?