Solved on Feb 08, 2024
Find the mean and standard deviation of when has mean and standard deviation .
STEP 1
Assumptions
1. The mean of the random variable is given as .
2. The standard deviation of the random variable is given as .
3. The new random variable is defined as a linear transformation of : .
4. The properties of linear transformations of random variables will be used to find the mean and standard deviation of .
STEP 2
To find the mean of , denoted as , we use the linearity of expectation, which states that for any constants and and a random variable :
STEP 3
Apply the formula to find using the given transformation :
STEP 4
Substitute the known values of and the constants into the formula:
STEP 5
Calculate the mean of :
STEP 6
To find the standard deviation of , denoted as , we use the property that for any constant and a random variable :
STEP 7
Apply the formula to find using the given transformation :
STEP 8
Since the addition of a constant does not affect the standard deviation, we only consider the multiplication by the constant:
STEP 9
Substitute the known value of into the formula:
STEP 10
Calculate the standard deviation of :
STEP 11
Combine the results for the mean and standard deviation of :
The mean of is and the standard deviation of is .
The correct answer is:
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