If Y is a continuous random variable with mean ? and

Chapter 4, Problem 26E

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QUESTION:

If  is a continuous random variable with mean  and variance  and  and  are constants, use Theorem  to prove the following:
a \(E(a Y+b)=a E(Y)+b=a \mu+b\).
b \(V(a Y+b)=a^{2} V(Y)=a^{2} \sigma^{2}\).

Equation Transcription:

Text Transcription:

E(aY+b)=aE(Y)+b=a mu+b

V(aY+b)=a^2V(Y)=a^2 sigma^2

Questions & Answers

QUESTION:

If  is a continuous random variable with mean  and variance  and  and  are constants, use Theorem  to prove the following:
a \(E(a Y+b)=a E(Y)+b=a \mu+b\).
b \(V(a Y+b)=a^{2} V(Y)=a^{2} \sigma^{2}\).

Equation Transcription:

Text Transcription:

E(aY+b)=aE(Y)+b=a mu+b

V(aY+b)=a^2V(Y)=a^2 sigma^2

ANSWER:

Solution 26E

Step1 of 3:

Let us consider a random variable Y with mean and variance let a  and b are constants.

We need to prove that:

a). E ( aY + b) = aE(Y ) + b

                        = aμ + b.

b). V ( aY + b) =

                         = .


Step2 of 3:

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