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Search results with tag "Random variables with means"
X Y be two random variables, with means µ and Var(X ) = = …
econweb.ucsd.eduX and Y are random variables with means µ x and µ y, variances , and covariance 2 and 2 σX σY σXY, all fixed constants. Consider the new random variable U = (Y − µ Y) − b(X−µx), where b is a fixed constant that I choose. It follows that U2 = (Y − µ Y) 2 − 2b(X−µx)(Y − µ Y) + b 2(X−µ x) 2. [Hint: Do not expand this ...