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    kchilds_2's Avatar
    kchilds_2 Posts: 1, Reputation: 1
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    #1

    Apr 17, 2010, 02:00 PM
    Expectation and variance of a random variable
    Expectation and variance of a random variable
    Let be a random variable with the following probability distribution:

    Value of
    -30 0.25
    -20 0.05
    -10 0.25
    0 0.20
    10 0.25

    Find the expectation and variance of .
    joinforfun8909's Avatar
    joinforfun8909 Posts: 12, Reputation: 3
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    #2

    Apr 19, 2010, 12:55 PM

    Expectation value= -30 *0.25 -20*0.05-10*0.25 +0*0.20 +10*0.25 = -8.5

    Variance can be calculated as = (-30 + 8.5)^2*0.25 + (-20+8.5)^2 * 0.05 .

    I'll leave that to you to calculate !

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