Problem: Expected value and variance of a difference
Problem
Suppose that X1 and X2 are independent random variable s where E\left( X_1 \right)=μ_1, E\left( X_2 \right)=μ_2 Var\left( X_1 \right)=σ_1^2 and Var\left( X_2 \right)=σ_2^2 .
- Find E(X_1-X_2)
- Find Var(X_1-X_2) .