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Compute the expected value and variance of Y=7X+3Solution .pdf

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Compute the expected value and variance of Y=7X+3 Solution The expected value of Y is E[Y] = E[7X + 3] = 7*E[X] + 3 The variance of Y is V[Y] = V[7X + 3] = 49*V[X] The 7 is squared when taken outside of the variance. The +3 has no effect on variance since it would only shift the data. The spread of the data would not change if all the values are shifted up 3 units..

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Compute the expected value and variance of Y=7X+3 Solution The expected value of Y is E[Y] = E[7X + 3] = 7*E[X] + 3 The variance of Y is V[Y] = V[7X + 3] = 49*V[X] The 7 is squared when taken outside of the variance. The +3 has no effect on variance since it would only shift the data. The spread of the data would not change if all the values are shifted up 3 units.

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