Use the result of Exercise 2.5-5 to find the mean and variance of the (a) ? ernoulli distribution. (b) ? inomial distribution. (c) ? eometric distribution. (d) ?Negative binomial distribution. Reference Exercise 2.5-5 Let the moment-generating function ?M ?( ?t ?) of ?X?exist for ??h < t < h?. Consider the function ?R?(?t ?) = ?M ?( ?t ?). The first two derivatives of ?R ?( ?t ?) are, respectively. Setting ?t ?= 0, show that (a) ??? ? ?' (0). (b) ??? 2 ? ? ' ' (0).
Week 4 Production Function - Production function: the relationship that states that the quantity of output produced depends on the quantity of inputs o In mathematical terms: Q = f (K, L) • Q represents level of output • K represents capital input • L represents labor input - Inputs: o Fixed inputs: fixed for a period of time, cannot be changed in the “short run” o Variable inputs: the firm can vary this input anytime “Long run” = however long it takes for all of your inputs to become “var