Show that a. E(X2) [E(X)2] b. cov (X,Y) = E[(X - X)(Y - Y)] = E(XY)

Question:

Show that
a. E(X2) ≥ [E(X)2]
b. cov (X,Y) = E[(X - µX)(Y - µY)]
= E(XY) - µXµY
where µX = E(X) and µY = E(Y).
How would you express these formulas verbally?
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Essentials of Econometrics

ISBN: 978-0073375847

4th edition

Authors: Damodar Gujarati, Dawn Porter

Question Posted: