2. Economics
3. rain x 0 no x 1 total long...

# Question: rain x 0 no x 1 total long...

###### Question details
 Rain (X = 0) No (X = 1) Total Long (Y = 0) 0.15 0.07 0.22 Short (Y = 1) 0.15 0.63 0.78 Total 0.30 0.70 1.00

(a) Compute E(Y) and E(X)

(b) Compute σ y 2 and σ x 2:

(c) Compute σ xy (note σ xy = Cov(X,Y) and Corr(X,Y) Define two random variables, W=3+6X and V=20-7Y

Compute:

(d) E(W) and E(V)

(e) σ w 2 and σ v 2

(f) σ wv and Corr(W,V)