Math Problem Statement

Suppose X and Y are random variables with E(X) =10, std dev (X) = 3, E(Y) =15, and std dev (Y)= 4. Given that X and Y are independent, what are the mean and standard deviation of the random variable X - Y?

Explain exactly how you calculated your final answer.

Solution

To find the mean and standard deviation of the random variable XYX - Y, we can use the properties of expectations and variances of independent random variables.

Step 1: Calculate the Mean of XYX - Y

The expectation of a difference XYX - Y of two random variables XX and YY can be calculated as: E(XY)=E(X)E(Y)E(X - Y) = E(X) - E(Y) Given that:

  • E(X)=10E(X) = 10
  • E(Y)=15E(Y) = 15

We substitute these values: E(XY)=1015=5E(X - Y) = 10 - 15 = -5

So, the mean of XYX - Y is 5-5.

Step 2: Calculate the Variance of XYX - Y

Since XX and YY are independent, the variance of XYX - Y is: Var(XY)=Var(X)+Var(Y)\text{Var}(X - Y) = \text{Var}(X) + \text{Var}(Y)

To calculate this, we need the variances of XX and YY. Given the standard deviations:

  • std dev(X)=3\text{std dev}(X) = 3
  • std dev(Y)=4\text{std dev}(Y) = 4

The variances are: Var(X)=(std dev(X))2=32=9\text{Var}(X) = (\text{std dev}(X))^2 = 3^2 = 9 Var(Y)=(std dev(Y))2=42=16\text{Var}(Y) = (\text{std dev}(Y))^2 = 4^2 = 16

Substitute these values into the variance formula: Var(XY)=9+16=25\text{Var}(X - Y) = 9 + 16 = 25

Step 3: Calculate the Standard Deviation of XYX - Y

The standard deviation of XYX - Y is the square root of the variance: std dev(XY)=Var(XY)=25=5\text{std dev}(X - Y) = \sqrt{\text{Var}(X - Y)} = \sqrt{25} = 5

Final Answer

  • The mean of XYX - Y is 5-5.
  • The standard deviation of XYX - Y is 55.

Summary of Calculations

  1. Mean: E(XY)=E(X)E(Y)=1015=5E(X - Y) = E(X) - E(Y) = 10 - 15 = -5
  2. Variance: Var(XY)=Var(X)+Var(Y)=9+16=25\text{Var}(X - Y) = \text{Var}(X) + \text{Var}(Y) = 9 + 16 = 25
  3. Standard Deviation: std dev(XY)=25=5\text{std dev}(X - Y) = \sqrt{25} = 5

Would you like further details, or do you have any questions?

Here are some additional related questions:

  1. How would the calculations change if XX and YY were not independent?
  2. What is the variance of X+YX + Y given that XX and YY are independent?
  3. How would you calculate E(X+Y)E(X + Y) and std dev(X+Y)\text{std dev}(X + Y)?
  4. If XX and YY had a correlation, how would that affect the variance of XYX - Y?
  5. Can you calculate E(aX+bY)E(aX + bY) and std dev(aX+bY)\text{std dev}(aX + bY) for constants aa and bb?

Tip: Remember that for independent variables, the variance of their sum or difference is the sum of their variances, regardless of the signs.

Ask a new question for Free

By Image

Drop file here or Click Here to upload

Math Problem Analysis

Mathematical Concepts

Probability
Statistics
Random Variables
Independence

Formulas

E(X - Y) = E(X) - E(Y)
Var(X - Y) = Var(X) + Var(Y)
std dev(X - Y) = √(Var(X - Y))

Theorems

Linearity of Expectation
Variance Sum for Independent Variables

Suitable Grade Level

College-Level Statistics or Probability