How Do You Calculate Covariance from a Joint Probability Table?

In summary, a bag contains three green beads, two red beads, and a blue bead. When two beads are selected at random, the joint probability distribution of (G,R) can be represented in a table with P(G=g) for g=0,1,2 and P(R=r) for r=0,1,2. It can be shown that Cov(G;R) < 0, meaning that the number of green beads and red beads selected are negatively correlated. There is a quicker way to compute this by calculating E(G | R = r).
  • #1
Gregg
459
0
A bag contains three green beads, two red beads and a blue bead. You select
two beads at random. Let G denote the number of green beads and R the
number of red beads you select.

(a) Write the joint probability distribution of (G,R) in a table. Show that
Cov(G;R) < 0.


I can do P(G=g) for g=0,1,2 and P(R=r) for r=0,1,2. but isn't f(g,r) is not equal to P(G=g)P(R=r)? Is it?
 
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  • #2
Hi Gregg! :smile:

Try the easy case:

is P(G = R = 0) = P(G = 0)P(R = 0) ? :wink:
 
  • #3
0,4/15,1/15
6/15,3/15,0
1/15,0,0

That's the table I got for G (0,1,2) in column and R(01,2) in row. Giving E(G)=11/15 and E(R)=9/15.

Is covariance just [itex]\sum_g\sum_r (g-E[G])(r-E[R])P(G=g,R=r) [/itex] ? Is there a quicker way to compute this?

calculate E(G | R = r).
 
Last edited:

Related to How Do You Calculate Covariance from a Joint Probability Table?

What is a joint probability table?

A joint probability table is a statistical tool used to display the probability of two or more events occurring simultaneously. It shows all possible combinations of events and their associated probabilities.

How is a joint probability table different from a regular probability table?

A regular probability table only displays the probability of one event occurring, while a joint probability table shows the probabilities of multiple events occurring simultaneously.

How do you read a joint probability table?

To read a joint probability table, simply look at the intersection of the two events you are interested in. The number listed at that intersection represents the probability of both events occurring together.

What is the purpose of a joint probability table?

The purpose of a joint probability table is to provide a visual representation of the probabilities of multiple events occurring together. It can be used to make predictions and inform decision making in various fields such as finance, marketing, and research.

How do you calculate the probabilities in a joint probability table?

The probabilities in a joint probability table are calculated by dividing the number of times the events of interest occur together by the total number of observations. This is known as the joint probability formula: P(A and B) = P(A) * P(B|A), where P(A) is the probability of event A occurring and P(B|A) is the conditional probability of event B occurring given that event A has occurred.

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