##Quiz 1, XP, Fall 2015, Solutions

Question 1

1.1  B = -10 + 15 W

1.2

E(W)=p=.6
sd(W) = sqrt(.6*.4) = .49

1.3

E(B) = -10 + 15*.6 = -1.
sd(B) = 15*.49 = 7.35

Question 2

2.1

P = .2*.02 + .8*A
P = .004 + .8*A

2.2

E(P) = .004 + .8*.068 = 0.0584
sd(P) = .8*.056 = 0.0448

2.3

W = 100 + 100P

E(W) = 100+100*0.0584 = 105.84

Var(W) = 100^2 * .0448^2 = 20.0704