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Mathematics 16 Online
OpenStudy (anonymous):

X1 and X2 are independently distributed random variables with P(X1=Ɵ+1) = P(X1=Ɵ-1) = 1/2 P(X2=Ɵ-2) = P(X2=Ɵ+2) = 1/2 i)Find the values of a and b which minimize the variance of Y=aX1 + bX2 subject to the condition that E[Y]=Ɵ. ii)What is the minimum value of this variance? The answers at the back of the book says that a and b is 4/5 and 1/5 respectively and the variance is 4/5. I don't know how they got that answer and I'm not even sure where to start...

OpenStudy (anonymous):

What i have found is a+b=1 E[Y]=E[X1]=E[X2] and var(X1)=1 and var(X2)=4 which could be potentially incorrect.

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