Two fair six-sided dice are rolled (one maize and one blue), with outcomes X and Y respectively for the maize and the blue die. (a) What is the covariance of X +Y and X – Y? (b) Are X +Y and X – Y independent? Explain. Hint: Is there a case where knowing the value of one would give us information about the other?
Two fair six-sided dice are rolled (one maize and one blue), with outcomes X and Y respectively for the maize and the blue die. (a) What is the covariance of X +Y and X – Y? (b) Are X +Y and X – Y independent? Explain. Hint: Is there a case where knowing the value of one would give us information about the other?
Two fair six-sided dice are rolled (one maize and one blue), with outcomes X and Y respectively for the maize and the blue die. (a) What is the covariance of X +Y and X – Y? (b) Are X +Y and X – Y independent? Explain. Hint: Is there a case where knowing the value of one would give us information about the other?
Definition Definition Measure of how two random variables change together. Covariance indicates the joint variability or the directional relationship between two variables. When two variables change in the same direction (i.e., if they either increase or decrease together), they have a positive covariance. When the change is in opposite directions (i.e., if one increases and the other decreases), the two variables have a a negative covariance.
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