Exercise Solution 3.40

Exercise Solution 3.40

  1. By [3.128], μ = ξμ = 0.4.
  2. By [3.129]




  3. By [3.131], we seek probabilities q1 and q2 such that


    By [3.132], those probabilities must satisfy


    Combining [s4] and [s5], we seek probabilities q1 and q2 such that


    This is a two-dimensional non-linear equation. It can be solved using Newton’s method. If you are using Microsoft Excel, you can simply use the solver function (see spreadsheet). The solution is


    Applying [3.133], we obtain the .25-quantile of X as –1.598.

Comments are closed.

Powered by WordPress. Designed by WooThemes