X 1 2 Y O 0.70 0.00 1 0.00 0.30 a) Compute and interpret the covariance and correlation between the events X and Y. b) Find the mean and variance for the linear function Z = 10X - 8Y.

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Consider the following table which contains the probability of two events X and Y happening together:
1
2
Y O 0.70 0.00
1 0.00 0.30
a) Compute and interpret the covariance and correlation between the events X and Y.
b) Find the mean and variance for the linear function Z = 10x - 8Y.
Transcribed Image Text:Consider the following table which contains the probability of two events X and Y happening together: 1 2 Y O 0.70 0.00 1 0.00 0.30 a) Compute and interpret the covariance and correlation between the events X and Y. b) Find the mean and variance for the linear function Z = 10x - 8Y.
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