Verbal statement

We want to develop verbal

statements of some
mathematical statement.
A example is 2x=4.
Its verbal statement is as
follows.
Here is variable which when
multiplied by 2 gives 4.
Verbal statement of an
algebraic statement which
is
Ans. Area of square whose
side ia a.
Verbal statement of X^2=4.
A number whose square is
4.

Example of pmf and

calculation of mathematical
expectation

A dice is tossed. The result

of a toss is determined by
sheer chance. Thus the
variable is random and it is
discrete as it can assume
only six values, all separated
from one another
Let X be the variable
assuming values from 1 to 6
with the respective
probabilities.

X 1 2 3 4 5 6
P(x 1/ 1/ 1/ 1/ 1/6 1/6
) 6 6 6 6
It satisfies two requirred
conditions for being pmf
(1) All the probabilities are
positive. Probability of
assuming any value is
always positive.
(2) All the probabilites add
up to 1.
E(X)=1X1/6+2X1/6+ ….
6X1/6= 6(6+1)/2X6=3.5

Mathematical expectation
Proof : E(X)= mean of x
Let there be a random
discrete variable X having
vaues x1, x2, x3….. xn.
The following table is
presented
Value frequency prob
x1 f1 f1/N
x2 f2 f2/N
x3 f3

xn fn fn/N
Sum N 1

Mean of x= (f1x1+f2x2+
fnxn)/N=x1(f1/N)+x2(f2/N)+
xn(fn/N)
=x1P(x=x1)+x2P(x=x2)
+xnP(x=xn)=E(X)=Mathema
tical expectation of X.
Formulae

E(a)=a=aX1=a.
Expectation of a constant is
that constant itself
Proof
Using probability
A constant is kind of
variable which assmes a
constant value with
probability 1

(1)E(aX)=aE(X)
Mathematical expectation
of product of a constant
and a variable is equal to
product of the constant and
mathematical expectation
of a variable.

(2)E(aX+b)=aE(X)+b

Mathematical expectation
of a sum of product of a
constant and a variable and
another constant is equal to
sum of product of the
constant and mathematical
expectation of the variable
and another constant.

(3) E(aX+by)=aE(X)+bE(Y)
A=1 and Y=1
E(X+b)= E(X)+b
Mathematical expectation
of a sum of product of a
constant and a variable and
product of another constant
and another variable is
equal to sum of product of
the constant and
mathematical expectation
of the variable and product
of mathematical
expectation of the another
variable and another
constant.

(4) E(X+c)= E(X)+c

(5) E(X-c)=E(X)-c: to be done
by students
Proof
E(X+c)=E(X)+E ( c) +E(X)+c
Proved

Proof by folloswing the

concept
 X P X+c
x1 p1 (x1+c)
x2 p2 (x2+c)
x3 p3 (x3+c)

Xn Pn (Xn+c)

E(x+c)=(x1+c)p1+
(xn+c)pn
=(x1p1+x2p2+…..xnpn)
+c(p1+p2+…pn)
=E(X)+c.1
=E(X)+c
It does not a matter
whether one adds a
constant to a variable to
find out the mean of the
sum, or one add constant
to mean of the variable

Application
Mistakenly , a student has
calculated E(ax+b) instead
of E(bx+a). He does not the
have to time to calculate
E(bx+a). What adjustments
he needs to make to
E(ax+b) to derive E(bx+a)?
Explanation
You are supposed to
calculate E(2x+3)
But you calculated E(3x+2).

Derive E(2x+3) by making

adjustments to E(3x+2)
We will not apply the frml
below.
E(3x+2)
=E[(3(x+2/3)]
Please di it on your own…..
E(ax+b)
=E[a(x+b/a)]
=aE(x+b/a)
=aE[b(X+b/a)]/b
=a E(bx+b^2/a)/b
=[a/bE(bx+b^2/a)]+(a.a/b-
a.a/b)
=a/b [E(bx+(b^2/a)+a]-a.a/b
=a/b[E(bx+a)]+(b-a.a/b)

Ler me define variance of a

variable.
Variance of variable x refers
to the extent of deviation of
different values of the
variable X from its mean.
Variance is the expected
value of squared deviations
of the variable from its
mean

V(X)=E(Y)
Y=[{X-E(X)}]^2

We want to find V(X)

X x-mean of x (x-mean of x)^2

1 -2 4

2 -1 1

3 0 0

4 1 1
5 2 4
Sum=10
Mean =2
Variance x=E(Y)=2.

Verbal statement of
V(X)=E [{X-E(X)}]^2
Variance of X is equal to
mathematical expectation
of square of difference
between the variable and
mathematical expectation
of the variable.

V(X)=E(X^2)-[E(X)]^2
Since V(X) is always positive.
E(X^2)>[E(X)]^2.
verify
If V(X) is zero, it means
E(X^2)=[E(X)]^2
X will be a constant
In that case x can not be a
variable, it will have to be a
constant.

2 4 2 4
24
2 4
2 4
2 4
4
V(X)= E(X^2)-[E(X)]^2
The verbal statement:
Variance of X is equal to
difference between
mathematical expectation
of square of X and square of
mathematical expectation
of X.
Application variance of a
constant is zero.
Variance of a variable is
defined as positive
Formule
V(cX)=c^2V(X)
Verbal statement
Variance of product of a
variable and a constant is
equal to product of ther
squatre of the variable and
variance of the variable

Proof

V(cX)=E[cX-E(cX)]^2
=c^2E[X-E(X)]^2
=c^2V(X)

V(5x)/V(X)=5 ?
V(ax+b)=V(ax-b)= a^2V(X)

V(ax+b)=V(ax+b)=V(aX)
+V(b)
=a^2V(X)+0=a^2V(X)
V(ax-b)=V(ax-b)=V(aX)-V(b)
=a^2V(X)-0=a^2V(X)

Two different variables

need not have different
variances

The extent of variations in

the two different variables
around their mean need not
be different.

Variance of X=The extent of

deviation of values of x
from mean of x
Covariance
Verbal explanation of the
formule.
Covariance is the expected
value of product of
deviation of the values of
the variables from their
means.
Definition of covariance
It is a measure of how
much the two variables
change together.
If the extent to which the
variables change together
is high, covariance is high.
Covariance is an average.
Cov(x.y)= E(x-meanx)(y-
meany)
E(x)=mean of x
What does it mean by
negative covariance?
Hatekar, page 97-98.
It means on an average, if(x-
meanx) is positive, then (y-
meany) must be negative or
the other way round.
Effectively, it means that on
an average if a value of X is
above its mean, the
corresponding value of Y
must be below mean of Y
and vica versa.
If x> meanx then onthe
average y< (y-meany)
This means, on an average,
X and Y move in opposite
direction relative to their
own means. This is what is
meant by negative
covariance.
Pls write on ur oswn the
meaning of positive
variance.

If covariance is zero, it
means that that the two
variables move
independently vis-vis each
other.

That mrans when x goes up

or x goes down , there is bo
fixed directiin in which y
moves.
Example
X^2+y^2=25
Let me find out point lying
on the circle.
X Y XY
5 5 25
5 -5 -25
-5 5 -25
-5 -5 25
0 0 0
Mean of x, mean y, and
mean of XY all are equal to
0
Cov(x,y)=E(xy)- E(x)E(y)
Covariance is zero.
It is ;possible to craete a set
of data on x and y so that
1, Cov(x,Y)=0
2. Cov(x,Y)>0
3. Cov(x.Y)<0
I am postponing proof of
V(ax+by) a little later.

I give u that mean of is 0.

Create a data set ob x which
produces such a result.
-1.-2,0,+1 and +2. produces
a zero mean.
Produce a set of data which
produces a positive
covariance. It will produce a
positive correlation
r=Cov(x, y)/ std(x) std(y)

What is method for

developing a set of data
producing a positive or
negative covariance
E(xy) > E(x) E(y)
E(xy) < E(x) E(y)
Let us develop an upward
sloping stln.
Y=3x +6(u may or not add a
constant)
The set of data points lying
on the line will represent
r=1 and with a + sign.
Given the fact that stds are
positive any set of data
showing positive corl will
shoe positive covaraince as
well.

When x= fixd at 5, y can

assume two values same in
magnitude but different is
sign.
When x= fixd at (-5), y can
assume two values same in
magnitude but different is
sign.
A circle demonstrates four
different kinds of
relatinship.
If x goes up,y goes up
If x goes up,y goes down
If y goes up,x goes up
If y goes down,x goes down
This scenario defies any
association and covariance
and correlation is zero

V(ax+by)=a^2V(X)+b^2V(Y)
+2abCov(X,Y)
V(ax-by)=a^2V(X)+b^2V(Y)-
2abCov(X,Y)
We will replace Cov(x,y) by
std(x)std(y) cor(X,Y)

V(ax+by)> V(ax-by)
V(ax+b)= V(ax-b)
V(a1x+b1)=V(a2x+b2)
Means a1=a2 but b1 and b2
need not be equal.
V(x)=V(-x)
AM of V(ax+by) and V(ax-
b)=a^2V(x)+b^2V(y)

[V(ax+by)-V(ax-by)]/
4ab=Cov(x,y)
Cov(x,y)=[V(2x+3y)-V(2x-
3y)]/24
Cov(x,y)=[V(a1x+b1y)-
V(a1x-b1y)]/4a1b1
Cov(x,y)=[V(2x+3y)-V(a1x-
b1y)]/24
Implies
a1=2 and b2=3

Cov(x,y)=[V(2x+b1y)-V(a2x-
3y)]/24
Implies
a2=2 and b1=3

V(ax+b)/V(cx+d)=a^2/c^2
V(2x+3)/V(2x-100000)=1
V(2x+3)/V(ax-100000)=1/2
Means 4/a^2=1/2
8/a^2=1
8=a^2
a=2 Xunderoot 2
Comment on Cov(X,Y) and
correlation between x and y
when
1) 4V(x)+9V(Y) > V(2x-3Y)
2) 4V(x)+9V(Y) < V(2x-3Y)
3) 4V(x)+9V(Y) = V(2x-3Y)

Sl no 5962
Unique paper code 227102.

C=10W+5X
Mean of W and X are 400
and 50. V(W)=36 and V(X)=
9. Coefficient of correlation
is(-0.4)
Compute the mean and
variance of C.
Ans.
E(C)= 10E(W)+5 E(X)=4250.
V(10W+5X)
=V(10W)+V(5X)+ 2
cov(10W,5X)
=100.V(W)+25V(X)
+(2.10.5)COV(X,Y)=100.36+
25.9+100(-7.2)=3600+225-
720=3105
Ans

Calculation of Cor(X,Y) is
provided below.
Cor(X,Y)= Cov(X,Y)/std(X)
std(Y)
Cov(X,Y)=
std(X)std(Y)cor(X,Y)=3.6.(--
0.4)=-7.2