Conditional variance calculations (Crypto-currency reward offered)

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SUMMARY

The forum discussion centers on the calculation of conditional variance in the context of independent random variables A and C, specifically exploring the relationship between their variances. The equations presented include V(A|B) = s, V(A) = r*s + w, and B = A + C, leading to the query on how to derive V(C) = [s*(r*s + w)] / [(r-1)s+w]. A response indicates that the expected result may contain a typo, as the derived formula for V(C) differs from the proposed equation.

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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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