Suppose X and Y are two dependent random variables. Let Z (3X - 2Y + 4) with the following set of information provided: E(X2) = 25 E(X) = 3 E(Y2) = 28 E(Y) = 4 E(XY)=20 What is var(Z)? O a. 172 O b. 96 O C. 22 O d. 28

Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
Publisher:NICHOLSON
Chapter7: Uncertainty
Section: Chapter Questions
Problem 7.7P
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Suppose X and Y are two dependent random variables. Let Z = (3X - 2Y + 4) with the following set of information provided:
E(X2)= 25 EX) = 3 E(Y2)= 28 E(Y)=4 E(XY) = 20
What is var(Z)?
O a. 172
O b. 96
OC. 22
O d. 28
Transcribed Image Text:Suppose X and Y are two dependent random variables. Let Z = (3X - 2Y + 4) with the following set of information provided: E(X2)= 25 EX) = 3 E(Y2)= 28 E(Y)=4 E(XY) = 20 What is var(Z)? O a. 172 O b. 96 OC. 22 O d. 28
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