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Suppose that the random variable X has to mean\(\mu \), and variance\({\sigma ^2}\)and that\(Y = aX + b\)Determine the values of a and b for which\(E\left( Y \right) = 0\)and\(Var\left( Y \right) = 1\)

Short Answer

Expert verified

The value of a is\( \pm \frac{1}{{{\sigma ^2}}}\)

The value of b is \( - au\)

Step by step solution

01

Given information

X be the random variable with mean\(\mu \) and variance \({\sigma ^2}\)

02

Calculating the values of a and b 

Given that \(Y = aX + b\)

\(E\left( Y \right) = 0\)and\({\mathop{\rm var}} \left( Y \right) = 1\)

Therefore we need

\(\begin{align}E\left( Y \right) &= a\mu + b\\ &= 0\end{align}\)

And the variance of Y that is

\(\begin{align}Var\left( Y \right) &= {a^2}{\sigma ^2}\\ &= 1\end{align}\)

Therefore, \(a = \pm \frac{1}{{{\sigma ^2}}}\)

\(b = - au\)

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