Let Y1 and Y2 be two uncorrelated random variables (i.e. Cov(Y1, Y2) = 0, noting that this does not mean they are independent). Then define the random variables U1 = Y1 + Y2 and U2 = Y1- Y2. 1. Find the expected values of both U1 and U2 in terms of the statistics of Y1 and Y2. 2. Find the variances of both U1 and U2 in terms of the statistics of Y1 and Y2. 3. Find the covariance and coefficient of correlation between U1 and U2. 4. Under what conditions will U1 and U2 be uncorrelated?

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Types of Bias

Statistics is the study of data collection, organization, analysis, interpretation, and presentation. Statistical bias is a characteristic of a statistical technique or its findings in which the expected value deviates from the actual root quantitative parameter being estimated. According to the actual definition of bias, it refers to the tendency of a statistic to overestimate or underestimate a parameter.