Worked solution
Choose between scaling one value and adding independent values
X and Y are independent continuous normal random variables with means 10,12 and standard deviations 2,3 respectively. Find
(a) ,
(b) ,
(c) ,
(d) ,
(e) x such that , for independent observations of X.
[1987/II/9]
CJC · Discussion · Question 7
Answer
(a)0.252; (b)0.106; (c)0.290; (d)0.722; (e)x≈21.9 (3 s.f.).
Define the original models
and , independently. In N(mean, variance), the second parameter is variance.
(a) Direct lower tail
to 3 significant figures.
(b) Scale a single variable
. Thus to 3 significant figures.
(c) Subtract independent variables
. Hence to 3 significant figures.
(d) Square the coefficients when combining variances
. Therefore to 3 significant figures.
(e) Add two independent observations
. The upper-tail equation gives x≈21.9 to 3 significant figures. This is the 75 th percentile of that sum distribution.
Common mistakes
2 X has variance 16, while X₁+X₂ has variance 8. They are different random variables.
Solution notes
All five asks, all source initial/transformed distributions with coefficient expansions, event rewrites, probabilities and quantile retained. No marks printed.