(a) Find the moment generating function of a random variable x ~ N(u,02).
(b) Find E(X*].
(c) For u = 0 and a = 1, find E[X|X > 0].
A4. Suppose that in any given time period a certain stock is equally likely to go up 1 unit
or down 1 unit, and that the outcomes of different periods are independent. Let x be the
cumulative amount the stock goes up in the first two periods, and let Y be the cumulative
amount it goes up in the first three periods. Find the correlation between X and Y.
This material may consist of step-by-step explanations on how to solve a problem or examples of proper writing, including the use of citations, references, bibliographies, and formatting. This material is made available for the sole purpose of studying and learning - misuse is strictly forbidden.