In: Statistics and Probability
Economy |
Probability f(x,y) |
Return On X |
Return On Y |
|
recession |
.20 |
-15 |
7 |
|
stable |
.55 |
8 |
3 |
|
Strong |
.25 |
20 |
1 |
You are given the expected value E(x) = 6.4, the variance Var(x) = 139.24, and
E(y) = 3.3, Var(y) = 4.11
a) Find the expected value E(x+y)
b) Find the variance Var(x+y)
c) Compute the covariance of x and y.
d) Compute and interpret sign and the size of the sample correlation coefficient.