Given below is a bivariate distribution for the random variables x and y.
f(x,y)
X
0.2
50 80
0.5
30 50
0.3
40 60
(a) Compute the expected value and the variance for x and y
E(x)= Ey= Var(x) - Var(y)
(b)Develop a probability distribution for x + y.
x + y
f(x + y)
130
80
100
(c) Using the result of part (b), compute E( + y) and Var( + y)
E(x + y) = Var( + y) =
(d) Compute the covariance and correlation for x and y. (Round your answer for correlation to two decimal places.)
covariance
correlation