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STAT 420-Every month, the government of Neverland spends

by | Dec 1, 2023 | Posted Questions

Every month, the government of Neverland spends X million dollars purchasing guns, Y million dollars purchasing butter, and saves Z million dollars. Assume X, Y, and Z follow a multivariate normal distribution with parameters :?x = 385, ?y = 300 ?z = 155, ?x = 40, ?y = 44, ?z = 46, and correlations of ?xy = ?0.23, ?xz = ?0.36, and ?yz = 0.35.

a)Suppose the government of Neverland spent 450 million dollars on guns and 200 million on butter during a particular month. Find the probability that more than 150 million was saved during the same month

b) Find the probability that the government of Neverland exceeds the 800-million spending limit during a given month (consider spending as X + Y + Z)

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