Statistics expected values problem

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In summary, two independent normal random variables, X1 and X2, are distributed as N(μ1,σ^2) and N(μ2,σ^2), respectively. The random variable U is defined as 2X1 - X2. The mean of U is found to be 2μ1 - μ2 and the variance is 5σ^2. The distribution of U is also a Gaussian distribution, N(2μ1 - μ2, 5σ^2).
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toothpaste666
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Homework Statement


  1. Let X1 and X2 be independent normal random variables, distributed as N(μ1,σ^2) and N(μ2,σ^2), respectively. Consider a random variable U = 2X1 − X2.

    (a) Find the mean of U.
    (b) Find the variance of U.
    (c) Find the distribution of U.

The Attempt at a Solution


a) E(U) = 2E(X1) - E(X2) = 2μ1 - μ2

b) Var(U) = 2^2 Var(X1) + (-1)^2 Var(X2)
= 4σ^2 + σ^2 = 5σ^2
c) This part I am not really sure what they are asking. Do they just want me to write N(2μ1 - μ2, 5σ^2) like they did for the other ones?
 
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  • #2
Probably.
It is not trivial that the distribution is a Gaussian distribution, but it is true here.
 

What is an expected value in statistics?

An expected value in statistics is a predicted value that represents the average outcome of a random experiment or event. It is calculated by multiplying each possible outcome by its respective probability and summing the results.

Why is expected value important in statistics?

Expected value is important in statistics because it provides a way to summarize the possible outcomes of a random event or experiment. It can also be used to make decisions and evaluate the effectiveness of different strategies or actions.

How is expected value different from actual value?

Expected value is a predicted value based on probabilities, while actual value is the observed value that results from a random event or experiment. Expected value is used to make predictions and analyze data, while actual value is used to evaluate the outcome of a specific event or experiment.

What is the formula for calculating expected value?

The formula for calculating expected value is:
E(X) = Σ(x * P(x))
Where:
E(X) is the expected value
x is the possible outcome
P(x) is the probability of that outcome occurring

How can expected value be applied in real life?

Expected value can be applied in real life in various ways, such as in decision-making, risk assessment, and predicting outcomes in games or gambling. For example, insurance companies use expected value to determine premiums, and businesses use it to evaluate the potential success of new products or strategies.

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