Conditional variance calculations (Crypto-currency reward offered)

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Discussion Overview

The discussion revolves around the calculation of conditional variance in the context of a mathematical problem related to cryptocurrency rewards. Participants explore the relationships between variances of random variables A, B, and C, particularly focusing on how to derive the variance of C given certain conditions and equations.

Discussion Character

  • Technical explanation
  • Mathematical reasoning
  • Debate/contested

Main Points Raised

  • One participant presents a mathematical problem involving conditional variance and offers a reward for a complete explanation.
  • The equations provided include relationships between the variances of A, B, and C, with specific values assigned to V(A|B), V(A), and V(B).
  • A later reply attempts to derive V(C) using the definitions of conditional variance but arrives at a different expression than expected, suggesting a potential typo in the original problem statement.
  • Some participants express uncertainty about the correctness of the original equations and the derived results, indicating that further clarification may be needed.

Areas of Agreement / Disagreement

Participants do not reach a consensus on the correctness of the original problem statement or the derived expressions for V(C). There are competing interpretations and uncertainties regarding the mathematical relationships involved.

Contextual Notes

The discussion highlights potential limitations in the problem statement, including possible typos and the assumptions underlying the independence of A and C. The derivation steps are not fully resolved, leaving some mathematical uncertainties unaddressed.

ElMacho
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I'm reading a journal article that implies the following but I can't see how it is done. I'll give 100 DogeCoin (or equivalent) to whomever can explain this in full.

Given that
V(A|B) = s
V(A) = r*s + w
B = A + C

and A & C are independent
so V(B) = V(A) + V(C) & V(C) = V(B) - V(A)

Then how can it be shown that

V(C) = [s*(r*s + w)] / [(r-1)s+w]

?
 
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ElMacho said:
...I'll give 100 DogeCoin (or equivalent) to whomever...

Hello and welcome to MHB! :D

We are a free math help site, so it is not our policy as MHB Math Helpers in general to personally expect or accept payment for help given on our site. However, if you feel like you want to make a genuine http://mathhelpboards.com/misc.php?do=donate to MHB (in USD) for whatever reason, then we certainly would not discourage that. (Sun)
 
MarkFL said:
Hello and welcome to MHB! :D

We are a free math help site, so it is not our policy as MHB Math Helpers in general to personally expect or accept payment for help given on our site. However, if you feel like you want to make a genuine http://mathhelpboards.com/misc.php?do=donate to MHB (in USD) for whatever reason, then we certainly would not discourage that. (Sun)

Crypto-currencies can be transferred much more easily than USD. They can easily be transferred for cash online.
 
ElMacho said:
I'm reading a journal article that implies the following but I can't see how it is done. I'll give 100 DogeCoin (or equivalent) to whomever can explain this in full.

Given that
V(A|B) = s
V(A) = r*s + w
B = A + C

and A & C are independent
so V(B) = V(A) + V(C) & V(C) = V(B) - V(A)

Then how can it be shown that

V(C) = [s*(r*s + w)] / [(r-1)s+w]

?

Welcome to MHB, ElMacho!

By definition we have that:
$$V(A|B) = \frac{V(AB)}{V(B)} = \frac{V(A(A+C))}{V(A+C)}$$
Since $A(A+C)=A$ and $A,C$ independent, we get that:
$$V(A|B)= \frac{V(A)}{V(A)+V(C)} = \frac{rs+w}{rs+w+V(C)} = s$$
Therefore:
$$V(C)=(rs+w)\frac{1-s}s$$
This is different from the expected result, so I suspect there is some kind of typo in your problem statement...
 

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