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Section 5.2 Bivariate and Multivariate Probability Distributions

Text of section.

Exercises Exercises

5.1.

Contracts for two construction jobs are randomly assigned to one or more of three firms, A, B, and C. Let \(Y_1\) denote the number of contracts assigned to firm A and \(Y_2\) the number of contracts assigned to firm B. Recall that each firm can receive 0, 1, or 2 contracts.
(a)
Find the joint probability function for \(Y_1\) and \(Y_2\text{.}\)
Solution.
Treating the two construction jobs as distinguishable, each job has 3 possible firms it can be assigned to, for a total of \(3^2 = 9\) possible assignment of the two jobs. Let the ordered triple \((j_1 j_2, , )\) represent the assignment of jobs 1 and 2 both to firm A, with other assignment ordered triples defined similarly. Then the 9 possible assignments are \(\{(j_1 j_2, , ), (j_1, j_2, ), (j_1, , j_2), (j_2, j_1, ), ( , j_1 j_2, ), ( , j_1, j_2), (j_2, , j_1), ( , j_2, j_1), ( , , j_1 j_2)\}\text{.}\) Each probability given by the joint probability function for \(Y_1\) and \(Y_2\text{,}\) \(P(Y_1 = y_1, Y_2 = y_2)\text{,}\) will be the number of assignments where firm A is assigned \(y_1\) jobs and firm B is assigned \(y_2\) jobs, all divided by the total number of possible assignments, 9. The table below gives all such probabilities \(p(y_1, y_2) = P(Y_1 = y_1, Y_2 = y_2)\text{:}\)
Table 5.2.1.
\(y_1\)
\(y_2\) 0 1 2
0 1/9 2/9 1/9
1 2/9 2/9 0
2 1/9 0 0
(b)
Find \(F(1, 0)\text{.}\)
Solution.
\begin{equation*} F(1, 0) = \sum_{t_1 \leq 1} \sum_{t_2 \leq 0} p(t_1, t_2) = p(0, 0) + p(1, 0) = \frac{1}{9} + \frac{2}{9} = \frac{3}{9} = \frac{1}{3} \end{equation*}