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Unformatted text preview: Y (adding a constant doesn’t change the spread, it just moves the distribution to the left of to the right). (d) Var( X ) = E [( XE ( X )) 2 ] = E [( Y + 1( μ + 1)) 2 ] = E [( Yμ ) 2 ] = Var( Y ) 34. Let X = daily cost for use of the tool. Then X = ($10) Y . From the given probability distribution we have that E ( Y ) = 1 . 3 and E ( Y 2 ) = 2 . 1. Therefore, Var( Y ) = 2 . 11 . 3 2 = 0 . 41. Finally (the units for the variance are ignored, since they don’t make sense), E ( X ) = ($10) E ( Y ) = $13, and Var( X ) = 10 2 Var( Y ) = 41 1...
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This note was uploaded on 02/23/2011 for the course MATH 444 taught by Professor Any during the Fall '10 term at Roosevelt.
 Fall '10
 Any
 Statistics, Probability

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