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Transforming discrete random probabilities

Let’s say we have a discrete random variable, called , and we know that there is another DRV which we can write as - where and are constants.

If we know the expected value for , as well as its variance, then we can also find the expected value and variance of !

Finding

Section titled “Finding ”

FInding

Section titled “FInding ”

Why square when finding the variance?

Section titled “Why square when finding the variance?”

If we didn’t square , we’d be finding the standard deviation. If we want to find the variance from the standard deviation, then we’ll need to square the result.