Prove Theorem 4.7.4. In Theorem 4.7.4. Law of Total Probability for Variances. If X and Y are
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In Theorem 4.7.4.
Law of Total Probability for Variances. If X and Y are arbitrary random variables for which the necessary expectations and variances exist, then Var(Y) = E[Var(Y |X)] + Var[E(Y|X)].
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Let EY Y Then Var Y EY Y 2 EY EY X EY X Y 2 EY EY X 2 2EY EY XEY X Y EEY X Y 2 We shall now c...View the full answer
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Related Book For
Probability And Statistics
ISBN: 9780321500465
4th Edition
Authors: Morris H. DeGroot, Mark J. Schervish
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