WST03 · Module
Combinations of random variables
E and Var of aX + b and aX + bY
Expectations behave exactly as you would hope: . Variances need care: constants are squared, added constants vanish, and for independent variables the variances always add, even for a difference.
≈ 30 minSums of observations and multiples
Weighing one bag and multiplying by is not the same as weighing four different bags. Both totals have the same mean, but has variance while has only .
≈ 35 minCombining normal and Poisson variables
Any linear combination of independent normals is normal, so "is bigger than ?" becomes "is positive?". Poisson variables add to a Poisson, but only sums: and are not Poisson.
≈ 35 min