Why is V(1/5X) equal to 1/25*V(X)?

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Discussion Overview

The discussion centers around the properties of variance, specifically addressing the transformation of the variance of a scaled random variable. Participants explore how the variance of a scaled variable, such as V(1/5X), relates to the variance of the original variable, V(X), and the mathematical justification for the relationship.

Discussion Character

  • Technical explanation
  • Debate/contested

Main Points Raised

  • One participant questions the transformation of V(1/5X) into 1/25*V(X), suggesting it should be V(1/5X) = 1/5*V(X).
  • Another participant cites the property of variance that states V(aX) = a^2V(X), providing a derivation based on the definition of variance and the properties of the mean.
  • A third participant reiterates the confusion regarding the transformation, emphasizing the need for clarity on the definition of variance.
  • A later reply notes that variance is based on the squares of the values, indicating that (1/5*X)^2 results in 1/25*X^2, which may support the earlier claim about the variance transformation.

Areas of Agreement / Disagreement

Participants express disagreement regarding the transformation of variance for scaled variables. There is no consensus on whether V(1/5X) should equal 1/25*V(X) or 1/5*V(X).

Contextual Notes

The discussion highlights the need for clarity on the properties of variance and the implications of scaling random variables, with some assumptions about the definitions and properties remaining unresolved.

Addez123
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TL;DR
I don't understand how V(1/5X) can be turned into 1/25*V(X).
Shouldn't I just extract the 1/5 so:
V(1/5X) = 1/5*V(X) ?

V stands for variance.
In my book, when calculating the variance of X = (x_1 + x_2 + x_3 + x_4 + x_5)/5
in an example it says:

V(X) = V(1/5(X_1 + X_2 + X_3 + X_4 + X_5)) = 1/25*V(X_1) + 1/25*V(X_2) + 1/25*V(X_3) + 1/25*V(X_4) + 1/25*V(X_5) = 1/5Ф

I don't understand how V(1/5X) can be turned into 1/25*V(X), shouldn't I just extract the 1/5 so:
V(1/5X) = 1/5*V(X) ?
 
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According to the properties of the variance it is ##V(aX)=a^2V(X)##. This follows from the definition of variance and the properties of the mean E(X).
It is ##V(X)=E(X^2)-E(X)^2##
and $$V(aX)=E((aX)^2)-E(aX)^2=E(a^2X^2)-a^2E(X)^2=a^2E(X^2)-a^2E(X)^2=a^2(E(X^2)-E(X)^2)=a^2V(X)$$
 
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Addez123 said:
Summary:: I don't understand how V(1/5X) can be turned into 1/25*V(X).
Shouldn't I just extract the 1/5 so:
V(1/5X) = 1/5*V(X) ?

V stands for variance.

In my book, when calculating the variance of X = (x_1 + x_2 + x_3 + x_4 + x_5)/5
in an example it says:

V(X) = V(1/5(X_1 + X_2 + X_3 + X_4 + X_5)) = 1/25*V(X_1) + 1/25*V(X_2) + 1/25*V(X_3) + 1/25*V(X_4) + 1/25*V(X_5) = 1/5Ф

I don't understand how V(1/5X) can be turned into 1/25*V(X), shouldn't I just extract the 1/5 so:
V(1/5X) = 1/5*V(X) ?
What's definition of variance?
 
Variance is based on values of ##X^2## and ##(1/5*X)^2 = 1/25*X^2##.
 

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