The expected value and variance of the random variable X are as follows: E(x) =716.04 var(x) =48656.08 The random variable x is now transformed to y according to the following linear equation. y =a + bx a =523.215 b =11.275 16 In the previous question, the variance of the transformed random variable is:a 6185434.58b 6311667.94c 6440477.49d 6571915.81

Given information: E(x) = 716.04 var(x) = 48656.08 --------------------------

Answered: The expected value and variance of the…

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter19: Externalities And Public Goods

Section: Chapter Questions

Problem 19.12P

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The expected value and variance of the random variable X are as follows:
	E(x) =	716.04
	var(x) =	48656.08
The random variable x is now transformed to y according to the following linear equation.

	y =	a + bx
	a =	523.215
	b =	11.275

16 In the previous question, the variance of the transformed random variable is:

a 6185434.58
b 6311667.94
c 6440477.49
d 6571915.81

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