Question

1. a) You’re a marketing analyst for Hasbro Toys. You get the following data:

Ad Expenditure ($100)	Sales Revenue ($1,000)
1	1
2	1
3	2
4	2
5	4

   Compute and interpret the sample correlation coefficient between advertising expenditure and sales revenue.

b) An experiment results in one of the following sample points: E₁, E₂, E₃, E₄, or E₅.

    Find P(E₃) if P(E₁) = 2P(E₃), P(E₂₎= 0.1, P(E₄) =0 .2 and P(E₅) = 0.1

c) For each of the random variables defined below, what values may each of the random variables X assume?

(i) (1 point) X=the number of newspapers sold by the New York Times each month

(ii) (1 point) X= amount of ink used in printing the Sunday edition of the New York Times.

Answer 1

The amount of ink used can take any value in the given interval like 10 gram -200 gram etc.

therefore the amount of ink used in printing the Sunday edition of the New York time takes continuous values.

Hence it is a continuous random variable.