Chapter 4: Multivariate Variables (p. 16)

[reiss1]

I was wondering whether the weight I highlighted in red should be (1-w)^2 instead of w^2.



Would appreciate an explanation!

 

[ami44]

I was wondering whether the weight I highlighted in red should be (1-w)^2 instead of w^2.

View attachment 3317

Would appreciate an explanation!

Imho you are correct. That should read (1-w)^2

 

[viswa27]

Kindly help me with the following question (found it online):

The amount of profit (X) for a sales company is continuously distributed uniformly with the parameters 0 and 1,500. However, a financial analyst believes that the actual profit (Y) is a minimum of X. What is the conditional distribution of X given X<1,300?

A. Continuous uniform with parameters 0 and 1,300.
B. Continuous uniform with parameters 0 and 1,500.
C. Continuous uniform with parameters 0 and 1,000.
D. Continuous uniform with parameters 0 and 2,800.

 

[David Harper CFA FRM]

Hi @viswa27 sorry, it's not a question I can help with because I don't agree with the language. On the one hand, it's too simple, but on the other hand, it's too sloppy (i.e., X, actual Y, conditional given X < 1,300 ... WTH). It's just not a good question and, thankfully, nothing like you'd see on the exam.