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STAT 02360 · Probability and Random Variables

STAT 02360 · Random variables

Expectation & variance

Definition

E[X]=Σ x p(x) or ∫ x f(x) dx. Linearity: E[aX+bY]=aE[X]+bE[Y] always. Var(X)=E[(X−μ)²]=E[X²]−μ². SD=√Var.

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Linearity does not require independence. Var(X+Y)=VarX+VarY if uncorrelated/independent.

Indicator variables turn counting problems into easy expectations.

Units: variance is squared units; quote SD when interpreting spread.

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Attempt each problem first, then open the worked solution.

  1. 1.For X with P(X=1)=P(X=3)=1/2, find E[X] and Var(X).