How Do You Calculate E[(x+1)^2(y-1)^2] for Independent Variables?

In summary, using the standard result for calculating the variance, the expected value of (x+1)2(y-1)2 is 18.
  • #1
Samwise_geegee
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Homework Statement


Let x and y be independent random variables with E[x]=1, E[y]=-1, var[x]=1/2, var[y]=2
Calculate E[(x+1)2(y-1)2]


Homework Equations



E[x]=1=μ
E[y]=-1=μ
var[x]=1/2 =E[(x-μ)2]
var[y]=2=E[(x-μ)2]




The Attempt at a Solution



Since x and y are independent,
E[(x+1)2(y-1)2]=E[(x+1)2]*E[(y-1)2]

var[x]=1/2=E[(x-1)2]

var[y]=2=E[(y+1)2

The signs in the equation I need to solve are throwing me off. I feel like I'm missing something simple. Any help is appreciated!
 
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  • #2
Samwise_geegee said:

Homework Statement


Let x and y be independent random variables with E[x]=1, E[y]=-1, var[x]=1/2, var[y]=2
Calculate E[(x+1)2(y-1)2]


Homework Equations



E[x]=1=μ
E[y]=-1=μ
var[x]=1/2 =E[(x-μ)2]
var[y]=2=E[(x-μ)2]




The Attempt at a Solution



Since x and y are independent,
E[(x+1)2(y-1)2]=E[(x+1)2]*E[(y-1)2]

var[x]=1/2=E[(x-1)2]

var[y]=2=E[(y+1)2

The signs in the equation I need to solve are throwing me off. I feel like I'm missing something simple. Any help is appreciated!

Sometimes the easiest approach is to use the standard result
[tex] \text{Var}(Y) = E(Y^2) - (E Y)^2,[/tex]
which is true for any random variable having finite mean and variance. (At some point in your life, you should prove it.) You can expand out ##(Y-1)^2## and go on from there.
 
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  • #3
Thanks Ray!

Thank you for the hint! Does this look right?

E[(x+1)2]*E[(y-1)2]

=(E[X2]+2E[X]+E[1])(E[Y2]-2E[Y]+E[1])

=(Var[X]+E[X]2+2E[X]+E[1])(Var[Y]+E[Y]2-2E[Y]+E[1])

=(.5+1+2+1)(2+1+1+1)=18
 
Last edited:

Related to How Do You Calculate E[(x+1)^2(y-1)^2] for Independent Variables?

1. What is the expected value equation?

The expected value equation is a mathematical formula used in statistics to calculate the average outcome of a random variable over multiple trials. It takes into account the probabilities of all possible outcomes and assigns a weighted average to each outcome.

2. How is the expected value equation used in decision making?

The expected value equation can be used in decision making to determine the most favorable outcome. By comparing the expected values of different options, a decision maker can choose the option with the highest expected value, which is likely to result in the most favorable outcome.

3. What are the key components of the expected value equation?

The key components of the expected value equation are the probabilities of each possible outcome and the corresponding values or payoffs of those outcomes. These values are multiplied together and then summed to calculate the expected value.

4. How does the expected value equation relate to risk and uncertainty?

The expected value equation takes into account both the likelihood and potential outcomes of a situation, making it a useful tool for assessing risk and uncertainty. It allows decision makers to weigh the potential risks and rewards of a decision before making a choice.

5. Can the expected value equation be used in real-world scenarios?

Yes, the expected value equation is commonly used in various fields such as finance, economics, and business to evaluate potential investments, make pricing decisions, and assess risk. It can also be applied to personal decision making, such as choosing between different job offers or investment opportunities.

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