Question: 4 0 . A box contains ten sealed envelopes numbered 1 , . . . , 1 0 . The first five contain no money,
A box contains ten sealed envelopes numbered
The first five contain no money, the next three each con
tains $ and there is a $ bill in each of the last two. A
sample of size is selected with replacement so we have
a random sample and you get the largest amount in any
of the envelopes selected. If X X and X denote the
amounts in the selected envelopes, the statistic of interest
is M the maximum of X X and X
a Obtain the probability distribution of this statistic.
b Describe how you would carry out a simulation
experiment to compare the distributions of M for
various sample sizes. How would you guess the dis
tribution would change as n increases?
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