In: Statistics and Probability
Suppose X and Y are {0, 1}-valued random variables with joint probability mass function given in the table below p(x, y) y 0 1 x 0 0.3 0.2 1 0.1 0.4 a. Determine E(Y |X = x) and var(Y |X = x). b. Use part a) to find E(Y ), and compare with the result using the marginal distribution of Y . c. Use part a) to find var(Y ), and compare with the result using the marginal distribution of Y .
a)
When X=0:
Following table shows the calculations for mean and variance
So
When X=1:
Following table shows the calculations for mean and variance
So
b)
Following table shows the calculations for Y:
So,
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Following table shows the calculations E[E(Y|X=x)]:
So,
c)
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Therefore