variance

Discussion in 'CT3' started by asn123, Dec 6, 2014.

  1. asn123

    asn123 Member

    chap 7 7.5

    How is E(X) in (ii) equals 1/lambda
     
    Last edited by a moderator: Dec 6, 2014
  2. Here E(X)=E(E(X/K))
    And from (i) part we know that
    E(X/K)=K
    thus E(X)=E(K)=1/lamda, since K has an exponential distribution with parameter lamda , that is, mean= 1/lamda
     
    Last edited by a moderator: Dec 6, 2014

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