If X is a random variable and a, b are real numbers, then which of the following statements are correct?
(A)
(B)
(C)
(D)
Choose the correct answer from the options given below:
If X is a random variable and a, b are real numbers, then which of the following statements are correct?
(A)
(B)
(C)
(D)
Choose the correct answer from the options given below:
Solution
For statement (A):
The linearity of expectation gives us that multiplying a random variable by constant multiplies the expectation by , and adding constant adds to the expectation.
Statement (A) is correct.
For statement (B):
The correct formula is .
Adding a constant does not change variance since variance measures spread. Shifting all values by constant does not change the spread.
Statement (B) is incorrect.
For statement (C):
The correct formula is .
Multiplying by constant multiplies variance by , not .
Statement (C) is incorrect.
For statement (D):
This is the standard variance formula where:
is the average of squares
is the square of average
Variance equals the average of squares minus the square of average.
Statement (D) is correct.
Only statements (A) and (D) are correct.
The correct answer is Option 2: (A) and (D) only.
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