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The opening prices per share Y1 and Y2 of two similar

Mathematical Statistics with Applications | 7th Edition | ISBN: 9780495110811 | Authors: Dennis Wackerly; William Mendenhall; Richard L. Scheaffer ISBN: 9780495110811 47

Solution for problem 87E Chapter 6

Mathematical Statistics with Applications | 7th Edition

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Mathematical Statistics with Applications | 7th Edition | ISBN: 9780495110811 | Authors: Dennis Wackerly; William Mendenhall; Richard L. Scheaffer

Mathematical Statistics with Applications | 7th Edition

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Problem 87E

Problem 87E

The opening prices per share Y1 and Y2 of two similar stocks are independent random variables, each with a density function given by

On a given morning, an investor is going to buy shares of whichever stock is less expensive. Find the

a probability density function for the price per share that the investor will pay.

b expected cost per share that the investor will pay.

Step-by-Step Solution:
Step 1 of 3

Elements of Statistics – Chapter 6 Notes Key Points  Density Curves  Normal Distribution  Standard Normal Curve  Standard Normal Table Density Curve  A fitted curve in regard to distribution  Is ALWAYS ON or ABOVE the horizontal axis  Total area under a density curve is always equal to 1 o Density Histogram To determine the density of a class, take the relative frequency and divide by the width of class. AREA = DENSITY x WIDTH Normal Distribution  A variable is “normally distributed” if its distribution has the shape of a symmetric curve. o Characterized by its Mean, , and a Standard Deviation, o The Mean

Step 2 of 3

Chapter 6, Problem 87E is Solved
Step 3 of 3

Textbook: Mathematical Statistics with Applications
Edition: 7
Author: Dennis Wackerly; William Mendenhall; Richard L. Scheaffer
ISBN: 9780495110811

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The opening prices per share Y1 and Y2 of two similar