(a) Recall that for a random variable X and constants a and b, E(aX+b) = aE(X) +b. Prove that Var(aX+b) = a²Var(X). (b) Mike agrees to donate 50 dollars to charity, plus 25 dollars for every goal scored in

A First Course in Probability (10th Edition)
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Chapter1: Combinatorial Analysis
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(a) Recall that for a random variable X and constants a and b, E(aX+b) = aE(X) +b.
Prove that
Var(aX + b)
=
= a²Var(X).
(b) Mike agrees to donate 50 dollars to charity, plus 25 dollars for every goal scored in
a particular World Cup soccer game. Thus Mike's donation is a random variable
Y = 25X + 50 where X is defined in problem 1. Find the expected value and the
variance of Y.
Transcribed Image Text:(a) Recall that for a random variable X and constants a and b, E(aX+b) = aE(X) +b. Prove that Var(aX + b) = = a²Var(X). (b) Mike agrees to donate 50 dollars to charity, plus 25 dollars for every goal scored in a particular World Cup soccer game. Thus Mike's donation is a random variable Y = 25X + 50 where X is defined in problem 1. Find the expected value and the variance of Y.
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