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Question: A book has 200 pages. The number of mistakes on each page is a Poisson random variable with mean 0.01, and is independent of the number of mistakes on all other pages.
a) What is the expected number of pages with no mistakes? What is the variance of the number of pages with no mistakes?
b) A person proofreading the book finds a given mistake with probability 0.9. what is the expected number of pages where this person will find a mistake?
c) What, approximately, is the probability that the book has two or more pages with mistakes?
What amount the investor receives / pays on different days? Explain the outcome of the contract explaining the theoretical concepts of the different steps.
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Let X1,..., Xn be a random sample recorded as heads or tails resulting from tossing a coin n times with unknown probability p of heads. Find the MLE pˆ of p. Also using the invariance property, obtain an MLE for q = 1 - p. How would you use the re..
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