Class summary: Wednesday, 4/23

I started out with a brief review of the Poisson process example from Monday's class and discussed a variation of the last question in this example, namely the probability that the 100th customer arrives within 12 hours of the opening of the store. This amounts to computing a probability associated with a sum of a large number of i.i.d. random variables (namely the W_i's), so normal approximation can be applied to compute (approximately) this probability.

I then began the final topic of this class, joint continuous distributions. Most of this material can be found in Sections 5.1-5.3 of the Pitman text. I passed out two handouts:

I began a series of examples illustrating the use of these formulas, which I will continue for another hour or two.

Exam 3: The final hour exam will be Friday, May 2. It will include the material covered since the last exam through the end of Chapter 4 (but not Chapter 5).


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