Math 300 , Spring 2008, Day 30, F, April 11 Hit reload.After class..

Mini-exam due Wed or before.

After class: guide to what's doable with CDF method:
Reading: try reading the handouts, any parts with F's (or G's) in them (CDF method). This is everything but the backside of the lognormal handout.

DO C below, and A and B, parts a,b,c (CDF method).
From Lognormal handout, Try A. Do B by the CDF method. D you can try by CDF if you like; method is optional there.

HW from day 29: 4.6: Read as much of 4.6 as you can stand + some more. I have misprints: p.142, bottom formulas are fY and FY,  not X as I have.  The axes in the graphs on p. 148 are rubbery.
A)  X is uniform on [0, 1].  Let Y = cX + d. (assume c > 0)   a) On what interval does Y have positive probability?
b)  Write FY(y0) = P(Y < y0), substitute Y = cX + d, and solve to get P(X.....)  Find a formula for this, using the CDF for X. (no integrals needed.  Use technique (a) below. )  Answers?  Check by drawing a picture, or pictures, compare with Ash pp. 106-7.
c) Take the derivative with respect to y, thus finding fY(yo).  For F and f, be sure to give the intervals where your functions are in force.
d) Now use the Density method to go straight from fX(x)  to fY(y).  Sketch it for c = 2, d = 3, and show where x= 0, .5, and 1 map to.

B)  Repeat A for the uniform distribution,  only assume c < 0  (so values flip direction.)  For  c = -2, d = 3,  show where x= 0, .5, and 1 map to, before you begin.  Use the CDF method, then try the Density method (use technique (c) for coping with the minus.)

C) Applying technique (b) bottom, Day 29: After the fundamental theorem --chain rule version--is understood, look at the derivation below  for standardizing X normal.  We got FZ(zo) = .  Instead of continuing with the change of variables, Take the derivative of this with respect to z (drop the 0-subscript to do so).
You should get, after everything is done, the formula for fZ(z).

HW: Problems from lognormal  handout.   Hand in A, B, C, D as you finish them.  B may be easiest to start with.
Ash p.156 #1, 3, 5 are more complicated because the functions are defined much more piecewise.  Work on them, and use the answers, till you understand them..  HAND IN 3, 5
= = = = = = = = = = = = = = = = = = = = = = = = = = = = =
Functions of Random Variables:  See Day 29.
Handouts:
--Two sided, the Lognormal distribution (W is lognormal, X = ln(W) is normal.  W = eX)
    Skewed data often "turns normal" when you do a logarithm to it.  If so, the original data is "lognormal."
          More about application next time.
    This handout  has homework problems in the corner.
-- One sided, Changing variables when there's a Y = -X type situation.

Today (Friday) only got thru CDF part of Day 29 page. Density method next time.

Figuring out what x's map to a y, or what ranges of x's map to a range of y.  or what dx's map to a dy.
A graph of y =g(x) may help, going over and down from a y to see what x('s) map to it. (Ash's favorite method)  Think of the probability density for the x's piled along the x axis, the probability for the y's turned sideways and piled along the y-axis.
Examples: Uniform to e, and  Lognormal, in Excel:  area in dx interval = area in dw interval.  (Dot to dot is an interval)




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