Question: Consider the following two random variables 1y and 2y , both are linearly related to another random variable x that has mean ( x )
Consider the following two random variables 1y and 2y , both are linearly related to another random variable x that has mean ( x ) and variance ( 2 x ), as follows: xbay 111 += xbay 222 += , where 2211 ,,, baba are constants. For example vacation travel expenditure ( 1y ) may be linearly related to income ( x ) and the number of car ownership ( 2y ) may be linearly related to income ( x ). Based on this information, find the expressions for the following: (i) (5 points) =)( 1yE (ii) (5 points) =)( 2yE (iii) (5 points) =)var( 1y (iv) (5 points) =)var( 2y (v) (5 points) =),(cov 21 yyar
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