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Imagination land, each person has exactly one child. Suppose that a child of a pro video gamer is also a pro video gamer with probability 0.7, or an amateur video gamer with probability 0.3. Suppose that the child of an amateur video gamer is a pro video gamer with probability 0.1, or an amateur video gamer with probability 0.5, or a non-gamer with probability 0.4. Suppose that the child of a non-gamer is a pro video gamer with probability 0.1, or an amateur video gamer with probability 0.5, or a non-gamer

Category: Business Statistics Paper Type: Online Exam | Quiz | Test Reference: APA Words: 2650

(a) By drawing a suitable directed graph with probability edge-weights, model the described scenario as a three-state discrete-time Markov chain.

Consider the Markov Chains on S with different probabilities that are 0.7 and 0.3 for the child of an amateur video gamer and the pro video gamer with the probability of 0.1 and the gamer probability of 0.5. the matrix of

(b) Write down the transition matrix P corresponding to the Markov chain that you drew in (a).


Now interpreting the states for Markov chain for the person who repeatedly plays a game
(c) Based on your answer to (b), calculate the probability that the great grand-child of a non-gamer is a pro video gamer. (6 marks)



(d) List the communication classes of the Markov chain that you drew in (a). For each communication class, determine with justification whether it is recurrent or transient. Please state in full any relevant general result s or definitions. (6 marks)


(e) Compute, with justification, a stationary distribution for the Markov chain that you drew in (a). Is the stationary distribution unique? In the long run, what proportion of people in Imagination land are pro video gamers?


Question 2
Suppose that the joint density function for two continuous random variables X and Y is defined by



a.      Are X and Y independent random variables? Justify your answer?


Question 3
An unfair coin has probability 2/5 of landing heads. As an experiment, the coin is thrown repeatedly, until the first time it lands tails, after which the experiment ends. Suppose that this full experiment is conducted n times in total, during which the total number of coin throws is N (this includes all n experiments).
a)      Name a probability distribution that is related to the number of throws in a single experiment.



Hence proved that expected number of throws is 5/3.

a)      Now suppose that the experiment is modified so that it stops only after 500 coins have landed tails, and before each throw, the thrown coin is selected randomly between two coins (each with probability 0.5) : one coin has probability 1 8 of landing heads and the other coin has probability 4 7 of landing heads. By modifying the arguments, you used in (b) and (c), or otherwise, find the expected total number of throws for the full modified experiment to be performed 6 times in a row.


Question 4
Here is a newspaper passage describing Mad Unicorn Disease: ”Recent reports suggest that Mad Unicorn Disease is on the rise. Every tenth person in the world now carries the disease, although 25% of the carriers report no symptoms. The characteristic symptoms for the most recent viral mutation of the disease are very distinct, so authorities can now safely assume that non-carriers never report any false symptoms. A hospital-administered test is reasonably accurate, but not perfect: it detects the disease in every tenth non-carrier.”
a)       Does the newspaper passage contain enough information to find the conditional probability that a person has Mad Unicorn Disease, given that the person tests positive for the disease? If not, please identify what information is missing and invent any reasonable-looking quantities for any missing value(s) that you may need.

Considering the given situation as we know that every tenth person in the world now carries the disease, although 25% of the carriers report no symptoms. Therefore it becomes 0.25 for the 1 value. 

a)      Based on your answer to (a) (if needed), calculate the conditional probability that a person has Mad Unicorn Disease, given that the person tests positive for the disease.

Consider probability measure for a person who has Mad Unicorn Disease, given that the person tests positive for the disease, the equation becomes

 

a)      Based on your answer to (a) (if needed), calculate the conditional probability that a person has Mad Unicorn Disease, given that the person reports no symptoms.

Considering the conditional probability and conditions for the positive and negative symptoms. The possibility of person with no reports is high as 25% were reported as persons with symptoms.

a)      Based on your answer to (a) (if needed), calculate the conditional probability that a person tests positive for Mad Unicorn Disease, given that the person reports no symptoms.

Considering the situations of question, a it gives 



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