Question 1
Let be a discrete random variable taking values in the set , where is a positive real number. Suppose for some . Consider the event . Markov's inequality gives a bound on the probability of this event. Let be the true probability of this event. Find the ratio .
(Hint: since Markov's inequality is an upper bound, we know that , so we must have .)
Solution: Markov's inequality states, for a nonnegative random variable and a positive number , that . Let . Here
,
and thus . The true probability that is
.
Thus we find . In other words, Markov's inequality is met with equality in this example.
Question 2
Fill in the blank. On a particular streetcar route in Toronto, streetcars take an average of 60 minutes to travel from one end of the route to the other, with a standard deviation of 3 minutes. Chebyshev's Inequality implies that at least _______% of streetcars take between 54 and 66 minutes to complete the route.
Solution: Let denote the standard deviation of a random variable having mean . Chebyshev's inequality states that
.
Here, we observe that 54 is standard deviations below the mean of and is standard deviations above the mean of . Chebyshev's Inequality then gives
. Looking at the complementary event, we get
. Thus the blank should be filled in with the number 75.
Question 3
The characteristic function of a random variable is given as , where . Find .
(Hint: apply the moment theorem.)
Solution:
. Thus .
Question 4
Find , the variance of the random variable defined in the previous question.
Solution:
. Thus . It follows that .