EXPECTATION AND MOMENTS

EXPECTATION
The expectation of a discrete random variable :
E ( x )= x . P(X =x)
E ( x k )= x k . P ( X=x )

The expectation of a continuos random variable :

E ( x )= y . P( X=x)
E ( x k )= y k . P ( X =x)

The Rule of Expectation :

E ( a )=a
E ( ax )=a . E(x )
E ( X Y ) =E ( X ) E (Y )

E ( aX +bY ) =a . E ( X )+ b . E (Y )

MOMENTS
The Rule of Variance :
E ( x ) 2
2
V ( X )=E ( x )
V ( a )=0
V ( X +a ) =V ( X )

V ( aX )=a 2 . V (X )