Solution Found!
Let X be a random variable with support {1, 2, 3, 5, 15,
Chapter 2, Problem 8E(choose chapter or problem)
Problem 8E
Let X be a random variable with support {1, 2, 3, 5, 15, 25, 50}, each point of which has the same probability 1/7. Argue that c = 5 is the value that minimizes h(c) = E( |X − c| ). Compare c with the value of b that minimizes g(b) = E[(X − b)2].
Questions & Answers
QUESTION:
Problem 8E
Let X be a random variable with support {1, 2, 3, 5, 15, 25, 50}, each point of which has the same probability 1/7. Argue that c = 5 is the value that minimizes h(c) = E( |X − c| ). Compare c with the value of b that minimizes g(b) = E[(X − b)2].
ANSWER:
Solution 8E
Step1 of 2:
We have A random variable X with support {1, 2, 3, 5, 15, 25, 50},each point of which has the same probability 1/7.
We need to Argue that c = 5 is the value that minimizes h(c) = E( |X − c| ). Compare c with the value of b that minimizes g(b) = E[(X − b)2].
Step2 of 2:
Consider a function
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