sum SN $1 +..+ EN. %3D (a) Derive the mcan and variance of SN when N has a Poisson distribution with parameter A. (b) Determine the mean and variance of SN where N has a geometric distributions with mean (c) Compare the behaviors in (a) and (b) as X 0o.

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Suppose 1, 2, ... are iid random variables having mean u and variance o2. Form the random
sum SN = $1 +:
+ EN.
...
(a) Derive the mean and variance of SN when N has a Poisson distribution with parameter
A.
(b) Determine the mean and variance of SN where N has a gcometric distributions with mean
(c) Compare the behaviors in (a) and (b) as A→ oo.
Transcribed Image Text:Suppose 1, 2, ... are iid random variables having mean u and variance o2. Form the random sum SN = $1 +: + EN. ... (a) Derive the mean and variance of SN when N has a Poisson distribution with parameter A. (b) Determine the mean and variance of SN where N has a gcometric distributions with mean (c) Compare the behaviors in (a) and (b) as A→ oo.
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