Question
Download Solution PDFTwo random variables X and Y are said to be independent if:
Answer (Detailed Solution Below)
Detailed Solution
Download Solution PDFTwo random variables X and Y are independent if the covariance between X and Y is zero, which is expressed mathematically as
Cov(X, Y) = E[(X - E[X])(Y - E[Y])] = 0.
This is equivalent to the expectation of their product being equal to the product of their individual expectations, or E (XY) = E (X) E (Y).
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