Solve for E(T2) and use the computational formula to find Var(T) The variance of the geometric distribution can be found with a clever trick, much like that in Exercises 27 30 Define the random variable R, which is 1 with probability q and 1 T with probability 1 q ...

If we expand 1 T 2 before taki ...

Solve for E(T2) and use the computational formula to find Var(T). The variance of the geometric distribution

Question:

Solve for E(T2) and use the computational formula to find Var(T).
The variance of the geometric can be found with a clever trick, much like that in Exercises 27-30. Define the random variable R, which is 1 with probability q and 1 + T with probability 1 - q.
Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...