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Suppose that X is a ramdom variable for ...

Suppose that X is a ramdom variable for which `E(X)=10` and Var (X) = 25. Find the values of a and b such that Y = ax - b has expectation 0 and variance 1.

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To solve the problem, we need to find the values of \( a \) and \( b \) such that the random variable \( Y = aX - b \) has an expectation of 0 and a variance of 1, given that \( E(X) = 10 \) and \( \text{Var}(X) = 25 \). ### Step-by-Step Solution: **Step 1: Understanding the Expectation of Y** The expectation of \( Y \) can be expressed in terms of \( X \): \[ E(Y) = E(aX - b) = aE(X) - b \] Given \( E(X) = 10 \), we substitute this into the equation: \[ E(Y) = a \cdot 10 - b \] We want \( E(Y) = 0 \), so we set up the equation: \[ a \cdot 10 - b = 0 \] This simplifies to: \[ b = 10a \tag{1} \] **Step 2: Understanding the Variance of Y** The variance of \( Y \) is given by: \[ \text{Var}(Y) = \text{Var}(aX - b) = a^2 \text{Var}(X) \] Since \( \text{Var}(X) = 25 \), we have: \[ \text{Var}(Y) = a^2 \cdot 25 \] We want \( \text{Var}(Y) = 1 \), so we set up the equation: \[ a^2 \cdot 25 = 1 \] Dividing both sides by 25 gives: \[ a^2 = \frac{1}{25} \] Taking the square root of both sides, we find: \[ a = \frac{1}{5} \quad \text{or} \quad a = -\frac{1}{5} \] **Step 3: Finding the Corresponding b Value** Using equation (1), we substitute \( a = \frac{1}{5} \) into it to find \( b \): \[ b = 10 \cdot \frac{1}{5} = 2 \] If we take \( a = -\frac{1}{5} \): \[ b = 10 \cdot -\frac{1}{5} = -2 \] Thus, we have two possible pairs: 1. \( (a, b) = \left(\frac{1}{5}, 2\right) \) 2. \( (a, b) = \left(-\frac{1}{5}, -2\right) \) ### Final Answer: The values of \( a \) and \( b \) such that \( Y = aX - b \) has expectation 0 and variance 1 are: - \( a = \frac{1}{5}, b = 2 \) or \( a = -\frac{1}{5}, b = -2 \).
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