Suppose that Y is a discrete random variable with mean u and variance o and let W = 5Y. (a) Do you expect the mean of W to be larger than, smaller than, or equal to µ = E(Y)? Why? O The mean of W will be larger than the mean of Y if u < 0, smaller if u > 0 and equal to u if u = 0. O The mean of W will be larger than the mean of Y if u > 0, smaller if u < 0 and equal to u if u = 0. O The mean of W will be larger than the mean of Y if u = 0, smaller if u < 0 and equal to u if u > 0. O The mean of W will be larger than the mean of Y if u = 0, smaller if u > 0 and equal to u if u < 0. O The mean of W will be larger than the mean of Y if u < 0, smaller if u = 0 and equal to u if u > 0. (b) Use the theorem below to express E(W) = E(5Y) in terms of u, where u = E(Y). Let Y be a discrete random variable with probability function p(y), g(Y) be a function of Y, and c be a constant. Then E[cg(Y)] = cE[g(Y)]. E(W) = Does this result agree with your answer to part (a)? O Yes O No (c) Recalling that the variance is a measure of spread or dispersion, do you expect the variance of W to be larger than, smaller than, or equal to o? = v(Y)? Why? O The variance of W will be smaller than o?, since the spread of values of W has decreased. O The variance of W will be equal to o?, since the spread of values of W has not changed. O The variance of W will be larger than o, since the spread of values of W has decreased. O The variance of W will be larger than o?, since the spread of values of W has increased. O The variance of W will be smaller than o2, since the spread of values of W has increased.

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Suppose that Y is a discrete random variable with mean u and variance ot and let W = 5Y.
(a) Do you expect the mean of W to be larger than, smaller than, or equal to µ = E(Y)? Why?
O The mean of W will be larger than the mean of Y if u < 0, smaller if u > 0 and equal to u if u = 0.
O The mean of W will be larger than the mean of Y if u > 0, smaller if u < 0 and equal to u if u = 0.
O The mean of W will be larger than the mean of Y if u = 0, smaller if u < 0 and equal to u if u > 0.
O The mean of W will be larger than the mean of Y if u = 0, smaller if u > 0 and equal to u if u < 0.
O The mean of W will be larger than the mean of Y if u < 0, smaller if u = 0 and equal to u if u > 0.
(b) Use the theorem below to express E(W) = E(5Y) in terms of u, where u = E(Y).
Let Y be a discrete random variable with probability function p(v), g(Y) be a function of Y, and c be a constant. Then E[cg(Y)] = cE[g(Y)].
E(W) =
Does this result agree with your answer to part (a)?
O Yes
O No
(c) Recalling that the variance is a measure of spread or dispersion, do you expect the variance of W to be larger than, smaller than, or equal to o? = V(Y)? Why?
O The variance of W will be smaller than o, since the spread of values of W has decreased.
O The variance of W will be equal to o?, since the spread of values of W has not changed.
O The variance of W will be larger than o, since the spread of values of W has decreased.
O The variance of W will be larger than o?, since the spread of values of W has increased.
O The variance of W will be smaller than o?, since the spread of values of W has increased.
Transcribed Image Text:Suppose that Y is a discrete random variable with mean u and variance ot and let W = 5Y. (a) Do you expect the mean of W to be larger than, smaller than, or equal to µ = E(Y)? Why? O The mean of W will be larger than the mean of Y if u < 0, smaller if u > 0 and equal to u if u = 0. O The mean of W will be larger than the mean of Y if u > 0, smaller if u < 0 and equal to u if u = 0. O The mean of W will be larger than the mean of Y if u = 0, smaller if u < 0 and equal to u if u > 0. O The mean of W will be larger than the mean of Y if u = 0, smaller if u > 0 and equal to u if u < 0. O The mean of W will be larger than the mean of Y if u < 0, smaller if u = 0 and equal to u if u > 0. (b) Use the theorem below to express E(W) = E(5Y) in terms of u, where u = E(Y). Let Y be a discrete random variable with probability function p(v), g(Y) be a function of Y, and c be a constant. Then E[cg(Y)] = cE[g(Y)]. E(W) = Does this result agree with your answer to part (a)? O Yes O No (c) Recalling that the variance is a measure of spread or dispersion, do you expect the variance of W to be larger than, smaller than, or equal to o? = V(Y)? Why? O The variance of W will be smaller than o, since the spread of values of W has decreased. O The variance of W will be equal to o?, since the spread of values of W has not changed. O The variance of W will be larger than o, since the spread of values of W has decreased. O The variance of W will be larger than o?, since the spread of values of W has increased. O The variance of W will be smaller than o?, since the spread of values of W has increased.
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