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Rules for means Rule 1: If X is a random variable and a and b are fixed numbers, then Rule 2: If X and Y are random variables, then.

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Presentation on theme: "Rules for means Rule 1: If X is a random variable and a and b are fixed numbers, then Rule 2: If X and Y are random variables, then."— Presentation transcript:

1 Rules for means Rule 1: If X is a random variable and a and b are fixed numbers, then Rule 2: If X and Y are random variables, then

2 Rules for Variances Rule 1: If X is a random variable and a and b are fixed numbers, then Rule 2: If X and Y are independent random variables, then Note: variances, NOT std. devs. always add. If X and Y are not independent, then there is a correlation factor added or subtracted from their sum.

3 Variance when X and Y are Correlated
Rule 2b: If X and Y are NOT independent random variables, then where  is the correlation factor between X and Y.

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