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P0076_Soln - Var W = l = 0.2 Var Z = l = 0.2 Var W Z = Var...

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P0076_Soln.doc The variance of a RV formed by adding two independent RVs is equal to the sum of the variances of those independent RVs: Var W + Z [ ] = Var W [ ] + Var Z [ ] The variances of each RV is easily found since they are geometric RVs:
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Unformatted text preview: Var W [ ] = l = 0.2 Var Z [ ] = l = 0.2 Var W + Z [ ] = Var W [ ] + Var Z [ ] = 0.2 + 0.6 = 0.8...
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