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(20 pts) Suppose that Xi,X2 X3, X4 are independent random variables, all of which have mean and variance ơ2 Compute the expected value and variance of the following (a) Y1 = 0.25X1 + 0.25X2 + 0.25X3 + 0.25X4 (b) ½ = 0.1X1 + 0.2X2 +0.3X3 + 0.4X4 (c) Y3 = 0.5X1 + 0.4X2 + 0.3X3-0.2X4 What do you observe about the expectation of Yi, Y2, Ys? Which of these random variables has the LEAST variance?

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i -1, 2, 3,4 He re g random 3, 4 X,X2.x3 and X4 are independen vaviable s E (Y 0.25 E (%) t 0.25E(メー2丿t 0.25E(s) +0 25 E(X) 03 ト人 Nore hat NoW Vart Y,) Var 0 25 0 25 X2 0 25 x3 +0 25 X4 (0 25 Vax) (0.25) Var( xa) We know mar , if Xi , s ave ind ef eVary) 2 (0.01 t 0.04 + 0.0g t 0-16) σ- = 0.300 Var (Y3) 40 .5 arxi 2 3丿+(-0.2

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