Problem: Normalizing a random variable
Problem
\(X\) is a random variable with \(E\left( X \right)=10\) , \(Var\left( X \right)=1/4\) . Let \(Y=a+bX\) . Find \(a,b\) such that \(E\left( Y \right)=0\) and \(Var\left( Y \right)=1\) .
Solution
Problem
\(X\) is a random variable with \(E\left( X \right)=10\) , \(Var\left( X \right)=1/4\) . Let \(Y=a+bX\) . Find \(a,b\) such that \(E\left( Y \right)=0\) and \(Var\left( Y \right)=1\) .
Solution