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Chp-6 Q6.30 & Exam Type Ques on pg37

A

Amit_Bansal

Member
Both ques relates to sum of independent normal random variables.

1.) in q6.30, variance is found by 2^2 * 1 + (-1)^2 * 1 = 5

2.) but in other ques. on pg 37, variance is found by 3*90000 + 4*10000 = 310k

3.) why in (2.) variance isn't found by 3^2 *90000 + 4^2 *10000 = 970k
 
I have a feeling you are trying to memorise the formula which is not a bad thing provided you understand what is going on.

I would recommend looking at Q6.25 and its solution. This will answer your question.
 
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