Beruflich Dokumente
Kultur Dokumente
Introductory Econometrics
Econ 3121A, Fall 2017
Due: In class on Tuesday, September 26, 2017
(no late problem set accepted)
*Please answer as succinctly as possible while still fully answering the questions. You should submit your
problem set together with a signed declaration of originality (on page 3).
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Problem 3. (Review of the Normal Distribution)
Let X be a normal random variable distributed as N (1, 4). Find the probabilities of the following events:
1. P (X 2).
2. P (X > 2).
3. P (|X 3| > 1).
Problem 5. (Covariance)
1. Let X and Y be two random variables. Using the definition of covariance (page 45 of Lecture Note 1)
and the properties of expectations (page 35 of Lecture Note 1), prove that:
Cov(X, Y ) = E(XY ) E(X)E(Y ),
Cov(X, Y ) = Cov(Y, X),
and
Cov(2X, X) = 2V ar(X).
and Y = X 2 .
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