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Exam_2014_summer

Econometrics Exam 2015

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

                         Y

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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