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Compute value for fields A

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Assignment Questions -

Assuming XA ∼ N(200, 202) and XB ∼ N(100, 402). Find the following:

Question a - Compute P90A value for fields A defined as P[XA > P90A] = 0.9.

Question b - Compute P90B value for fields B defined as P[XB > P90B] = 0.9.

Question c - Assuming fields A and B are independent specify the distribution of XA + XB and compute its parameter values. Compute P90A+B where P[XA + XB > P90A+B] = 0.9.

Question d - Assuming XA and XB have correlation ρ, specify the distribution of XA + XB and compute its parameter values. Compute P90A+B for various correlation values. Plot your results with range of correlation values from (-1, 1) on the x-axis and corresponding values of P90A+B on the y-axis. Compare the values of P90A + P90B with that of P90A+B.

Reference no: EM132583615

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