- #1
michonamona
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Homework Statement
suppose you have the following function:
w=a+b(e+z)
a, b and e are constants and z is a random variable distributed by some density function g(z).
What is the variance of w?
i.e. var(w)
Homework Equations
Suppose E(z) = 0 (expectation of z is 0) and var(z)=[tex]\sigma^{2}[/tex]
The Attempt at a Solution
The solution is var(w)= [tex]b^{2} \sigma^{2}[/tex], but I don't understand why. I appreciate your input.
M