Write a general rule for E(X - c) where c is a constant. What happens when you let c - µ , the expected value of X?
Problem 43E Answer: Step1: We have, E(X - c) Where,C is constant We need to write a general rule for E(X - c) and we need to check what happens when you let c - µ , the expected value of X. Step2: The general rule for E(X - c) is given by E(X - c) = E(X) - E(c) = E(X) - c [because Expectation of any constant is constant only] When we take (c - ), the expected value of X is given by E(X - c) = 0.