Purchase Solution

Distribution of Functions with Random Variables

Not what you're looking for?

Ask Custom Question

A sum of $50,000 is invested at a rate R, selected from a uniform distribution on the interval (0.03, 0.07). Once R is selected, the sum is compounded instantaneously for a year so that X= 50000 e^R dollars is the amount at the end of that year.

a) Find the distribution function and the p.d.f. of X.

b) Verify that X = 50000e^R is defined correctly if the compounding is done instantaneously.

Purchase this Solution

Solution Summary

This solution answers questions regarding the distribution of functions with random variables.

Purchase this Solution

Free BrainMass Quizzes
Terms and Definitions for Statistics

This quiz covers basic terms and definitions of statistics.

Measures of Central Tendency

Tests knowledge of the three main measures of central tendency, including some simple calculation questions.

Know Your Statistical Concepts

Each question is a choice-summary multiple choice question that presents you with a statistical concept and then 4 numbered statements. You must decide which (if any) of the numbered statements is/are true as they relate to the statistical concept.

Measures of Central Tendency

This quiz evaluates the students understanding of the measures of central tendency seen in statistics. This quiz is specifically designed to incorporate the measures of central tendency as they relate to psychological research.