(Linearity of expectation II) Let X, Y be random variables and a, b, and c be constants. Use propertiesof integration/summation to show that:E(aX + bY + c) = aE[X] + bE[Y ] + c
Question
(Linearity of expectation II) Let X, Y be random variables and a, b, and c be constants. Use propertiesof integration/summation to show that:E(aX + bY + c) = aE[X] + bE[Y ] + c
Solution
Sure, here is the step-by-step proof:
-
The expectation of a random variable is defined as the sum (for discrete variables) or the integral (for continuous variables) of the variable multiplied by its probability. So, we have:
E(aX + bY + c) = ∫(aX + bY + c)f(x,y) dx dy (for continuous variables)
or
E(aX + bY + c) = Σ(aX + bY + c)P(X=x, Y=y) (for discrete variables)
-
We can split the integral or sum into separate parts:
E(aX + bY + c) = a∫Xf(x,y) dx dy + b∫Yf(x,y) dx dy + c∫f(x,y) dx dy (for continuous variables)
or
E(aX + bY + c) = aΣXP(X=x, Y=y) + bΣYP(X=x, Y=y) + cΣP(X=x, Y=y) (for discrete variables)
-
The integral or sum of the joint probability density or mass function over all possible values of X and Y is 1. So, we have:
∫f(x,y) dx dy = 1 (for continuous variables)
or
ΣP(X=x, Y=y) = 1 (for discrete variables)
-
Therefore, we can simplify the equation to:
E(aX + bY + c) = aE[X] + bE[Y] + c
This shows that the expectation is a linear operator, which is the property we wanted to prove.
Similar Questions
(Linearity of expectation I) Let X be a random variable, and a, b be constants. Use properties ofintegration/summation to show that:E(aX + b) = aE[X + b]
E[aX + bY + c]
Let X and Y be two discrete random variables with the given pmf pX (xi),i = 1, 2, . . . , n, and pY (yj ), j = 1, 2, . . . , m. Verify for following properties using thedefinition E[X] = ∑ni=1 xipX (xi).• (linearity) E[aX + bY + c] = aE[X] + bE[Y ] + c.• (monotonicity) If X ≤ Y , E[X] ≤ E[Y ].
Let X and Y be two continuous random variables, Find E(X+Y)*E(X)+E(Y)E(X)-E(Y)E(X)E(Y)E(X)/E(Y)
This question refers to the random variables X and Y from Question 1. Use your calculatedvalues from that question while answering this question.(a) Let Z = Y − aX, where a is a constant to be specified. There is one value of a for whichX and Z are uncorrelated. Find this value of a. [3 marks](b) Let W = X − bY , where b is a constant to be specified. There is one value of b for whichY and W are uncorrelated. Find this value of b. [3 marks](c) Verify that ab = ρ2X,Y
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.