CT3 CH7 Conditional Expectation Q7.5&7.7

Discussion in 'CT3' started by Sunil Sanga, Aug 4, 2016.

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  1. Sunil Sanga

    Sunil Sanga Member

    In question 7.5
    Variable K has an exp(lemda).

    For a given value of K, random variable X has an Poisson (k)

    Part 1) expression of E(X/K)

    Can anyone explain why the solution is not given as per standard formula of Conditional Expectation form instead of below -
    E(X/K=k)=k
    And same goes for Variance in Q 7.7
     
  2. John Lee

    John Lee ActEd Tutor Staff Member

    Because you don't need to calculate E(X|K=k) from scratch as you are given the distribution of X|K and so you can sipl look up the mean and variance in the Tables.
     

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