There's a difference between \( X_1 + X_2 \) and \( 2X \)
E.g.
\( X_1 + X_2 \) is roll two dice and add their score. ( \( X_1 , X_2 \) are IIDs)
\( 2X \) is roll a single and double the score.
The mean is same in both the cases but variance is higher in \( 2X \)
\(Var ( X_1 + X_2 ) = Var(X_1) + Var(X_2) = 2 \ Var(X) \) [ Exam style ques ]
\(Var ( 2X ) = 4 \ Var(X) \) [ Ques 2.20 ]
Last edited by a moderator: Sep 4, 2016