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Exam_2014_summer

Econometrics Exam 2015

A game of chance awards the participant winnings (Y) in pounds sterling according to the following probability distribution:

y	5 15
p	0.3 0.7

[15%] Find the expectation of the
[25%] Find the variance of the
The game of chance is altered so that the winnings are mulitplied by five and the participant must pay a cost of 20 pounds for the right to
- [25%] Find the expectation of the net winnings in the altered game of
- [35%] Find the variance of the net winnings in the altered game of

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